Ferrous Scrap Export Bid Price to Rise to 25,175 Yen

The ferrous scrap export bid price for shipping in April for H2 increased by 685 yen per tonne from the previous month to 25,175 yen per tonne for F.A.S. by Kanto Tetsugen Kyodo Kumiai, the scrap dealers’ association in Tokyo. The bid volume was 20,000 tonnes as a total. The orders from Asian steel manufacturers are concentrating on the Japanese scrap because the delivery from the U.S. and Russia, etc. influenced Arctic cold wave.The bid price rose by 18% or 3,840 yen per tonne for 2 consecutive months.The proposal tenders were 19 from 13 companies. 2 companies refused the proposal tenders. Amount of the proposal tenders decreased by 4,700 tonnes to 140,300 tonnes, being the same level of last month when the amount was record high. Mr. Watanabe, chairman of the association, analyzed that this bid price was nearly peak since the export price to South Korea was 24,800 yen per tonne for FOB in recent days. However, he is negative against the viewpoint that the domestic and overseas ferrous scrap market price drop sharply. Further, he pointed out that amount of ferrous scrap generation is few, and the production volume of the electric furnace steel makers increased after April. He forecasts that the market price will keep its firm trend thanks to tight ferrous scrap supply and demand.