Japan Ferrous Scrap Export Price Rises in Tokyo and Osaka

Japanese ferrous scrap export price hit record FAS 32,948 yen per tonne for H2 in average at monthly scrap export tender for March shipment held by Kanto Tetsugen on Friday. The higher price was apparently caused by aggressive appetite by South Korean buyers due to unsmooth scrap delivery from USA and Russia. The successful bid was averaged FAS 32,948 yen per tonne for H2 grade, which was 765 yen higher than previous month and higher than former record of 32,183 yen for January order. An export won the tender with 33,030 yen per tonne of bid. Other traders also won the tender at 33,020 yen, 32,920 yen and 32,820 yen of bids respectively. They won the tender for 5,000 tonnes each shipping total 20,000 tonnes by April 15. All 15 eligible exporters submitted total 21 bids for the tender. The tender with all eligible exporters was the first since the establishment of the association. The total volume of the bids was 108,500 tonnes. The chairman Atsushi Watanabe said the results were more than expected and South Korean buyers were likely to shift to Japanese scrap due to the short lead time when the delayed delivery from USA and Russia. He said the local market price around Tokyo could increase with higher export shipping. Japanese scrap export price also increased to averaged FAS 33,070 yen per tonne for H2 grade at export tender held by Kansai Tetsugen on Friday. The price was 122 yen higher than successful bid at Kanto Tetsugen’s tender and the highest price both in Osaka and Tokyo. The average price also hit the first 33,000 yen level for the export price. An exporter won the tender with the no.1 bid at 33,120 yen per tonne and no.2 bid at 33,020 yen for 5,000 tonnes each of order. The firm ships total 10,000 tonnes of scrap by March 15. Fourteen exporters submitted 15 bids while 5 of 19 eligible exporters declined to submit bid for the tender. The averaged bid was 31,393 yen per tonne and 8 bids by 7 firms were more than 32,000 yen. Electric furnace steel makers around Osaka reduced the scrap purchase price by 500 yen per tonne last week. However, the new export order with 10,000 tonnes of shipping could make local supply tighter. The local steel makers are likely not to reduce the purchase price widely.