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

Japanese ferrous scrap export price hit FAS 34,342 yen per tonne for H2 grade for October shipment at monthly tender held by Kanto Tetsugen on Friday, which was 1,023 yen higher than the price at previous tender on August 10. The price level was almost same level as domestic electric furnace steel makers’ purchase price under increasing export transaction for East Asia.

An exporter won the tender at 34,550 yen per tonne for 5,000 tonnes of shipment. Other 3 exporters won the tender at 34,450 yen, 34,210 yen and 34,200 yen each with 3,000 tonnes, 5,000 tonnes and 5,000 tonnes of shipment respectively. They ship the scrap by November 15.

The total volume was 18,000 tonnes, which was 2,000 tonnes lower than previous tender. Thirteen exporters out of 16 eligible companies submitted 21 bids for the tender.

Japanese scrap export price is FOB 34,000-34,500 yen per tonne for H2 grade for East Asia recently. The price is 500-1,000 yen higher than recent bottom in late August. The export price to South Korea increases when US scrap price increases.

Under the higher export price, local electric furnace steel makers increase the scrap purchase price in September. The purchase price by makers around Tokyo increased by 500-1,000 yen to 34,000-35,500 yen per tonne for H2 grade in the month.