Ferrous Scrap Export Price Drops in Osaka

Ferrous scrap export price hit FAS 21,000 yen per tonne from Osaka bay for H2 grade at export tender held by Kansai Tetsugen on Monday. The price is 2,150 yen lower than other Osaka dealers group’s tender on February 10 and 1,750 yen lower than tender by Kanto Tetsugen on February 12. Japanese export price decreases due to slump in East Asian market.

Toyota Tsusho Corporation won the tender to ship 5,000 tonnes of scrap by March 24. Ten exporters out of 17 eligible firms submitted 10 bids, in which 3 bids were more than 20,000 yen per tonne.

Local electric furnace steel makers around Osaka pay 19,000-20,000 yen per tonne for H2 grade, which decreased by 500-1,000 yen last week and hit less than 20,000 yen for the first time in a month. Some dealers expect the export shipping could improve the local supply balance while the local market decreases under slower demand.

Scrap supply around Osaka is dull when local steel makers expand production cut while the export shipping decreases. The steel makers try to reduce the purchase price under the oversupply.