Japan Ferrous Scrap Price Export Hits Record

Japanese ferrous scrap export price hit record 50,000 yen per tonne for H2 grade. Successful bid increased by 6,700 yen to FAS 52,250 yen per tonne from Tokyo bay for April shipment at monthly tender held by Kanto Tetsugen on Tuesday. Japanese trader will ship 5,000 tonnes by end of April. Twelve traders out of 15 eligible companies submitted 12 bids, 3 bids of which exceeded 50,000 yen per tonne. They offered 58,000 tonnes, which was 48,000 tonnes lower than previous month. Offshore buyers try to increase Japanese scrap to secure the requirement under tight supply when crude steel output increases worldwide. The tender price level jumped after local electric furnace steel makers around Tokyo increased the scrap purchase price by 7,000-7,500 yen per tonne after previous tender. Kanto Tetsugen sees local scrap market keeps increasing but local supply around Tokyo could improve when ship charter tends to be difficult and scrap suppliers increase the shipment toward end of fiscal year. The scrap dealers’ group expects the market price could peak temporally.