Japan Ferrous Scrap Export Price Rises at Kanto Tetsugen’s Tender

Japanese ferrous scrap export price increased by 1,836 yen to FAS 37,250 yen per tonne from Tokyo bay for H2 grade for January shipment from previous month at monthly export tender held by Kanto Tetsugen on Wednesday. The price increased for the first time in 3 months. The successful bids were 37,500 yen per tonne, 37,250 yen, 37,150 yen and 37,050 yen by 4 bidders for 20,000 tonnes of export to ship by February 15. All 15 eligible exporters submitted 21 bids, which was first full attendance of the eligible exporters in 3 months. They offered total 113,000 tonnes, which was 57,000 tonnes higher than previous tender. Kanto Tetsugen said the price was more than expected and favorable level under the current market. The scrap dealers’ group said the local market could keep firm with the favorable result. Local electric furnace steel makers reduced the scrap purchase price by around 5,000 yen per tonne in recent one and half months while the scrap export price from Tokyo bay also decreased during the period. However, the export price hit bottom when offshore buyers resumed the purchase of relative low priced Japanese scrap. Taiwanese and Chinese buyers restarted the purchase since end of November. A dealer source said Taiwanese buyers might shift to Japanese scrap from other source when ocean freight surges partly due to higher crude oil price.