Japan Ferrous Scrap Export Price Hits Record

Kanto Tetsugen’s monthly ferrous scrap export tender price hit record averaged FAS 66,450 yen per tonne from Tokyo bay for H2 grade for July shipment on Wednesday, which was 1,600 yen higher than previous tender and renewed record for 6 months in a row. The price increased by around 30,000 yen or around 88% in a year when worldwide higher steel demand lifted international price ferrous scrap price. Two exporters won the tender with 66,700 yen per tonne and 66,200 yen respectively. The exporters ship 10,000 tonnes of scrap by July end, which was 5,000 tonnes more than previous tender. Fourteen exporters out of 16 eligible firms submitted bids.Ferrous scrap export shipping volume is low level from Tokyo bay recently. Kanto Tetsugen increased the export volume to 10,000 tonnes for July shipment when the market concerns the low level export could result in lower market price. The higher winner price reflects recent higher scrap market at home and abroad with strong demand worldwide. Kanto Tetsugen expects the scrap market around Tokyo has no negative factor and could keep firm under tight supply. Kanto Tetsugen sees high grade scrap price increases with strong demand from integrated steel makers and the price gap between high grade and heavy grade widens.