Japan Ferrous Scrap Export Price Hits Record

Japanese ferrous scrap export price hit record FAS 37,928 yen per tonne for H2 grade at monthly export tender held by Kanto Tetsugen on Tuesday, which was 1,205 yen higher than previous month and renewed record for 2 months in a row. The price increased under higher spot export price to Asian market. The first bid was FAS 38,120 yen per tonne for the tender. The other bids to won the tender were 38,020 yen, 37,820 yen and 37,750 yen. Four trading firms won 5,000 tonnes export order each to ship total 20,000 tonnes by November 15. The eligible 15 trading firms submitted 20 bids for the tender. Nine of the tenders were more than 39,000 yen per tonne. The firms offered total 109,000 tonnes of export, which was 3,000 tonnes higher than previous month. Kanto Tetsugen said the successful bids were higher than expected under short supply of scrap worldwide with strong steel demand despite of the higher yen rate. The scrap dealers’ group expects the local scrap market around Tokyo has no negative factor immediately. Local electric furnace steel makers pay 37,000-38,000 yen per tonne for H2 grade and some makers pay as high as 39,500 yen. The market price could increase gradually when the makers increase the purchase for higher output after the maintenance outage during summer.