Japan Ferrous Scrap Export Price to Korea Continues to Decrease

Japanese ferrous scrap export price to South Korea continued to decrease. Dongkuk Steel, South Korean major steel maker, currently contracted Japanese ferrous scrap at FOB 30,000-30,500 yen per tonne for approximately 12,000 tonnes of H2 grade last week, according to several Japanese dealer sources. The contracted price is lower by 1,000-2,000 yen than the export price to South Korea contracted in the previous week.

Japanese export price to South Korea had been cheaper than American export price. However, American exporters are recently lowering offer prices to East Asian users when European ferrous scrap export price to Turkey decreased. American export price to South Korea is decreasing to CFR US$ 445-450 per tonne (34,200-34,500 yen or FOB 30,000 yen). Consequently South Korean steel makers are requesting price cut to Japanese exporters.

Japanese domestic ferrous scrap market price maintains downward when Tokyo Steel Manufacturing, Japanese largest electric furnace maker, lowered its purchasing price at some works on Friday. South Koran steel makers are showing strong appetite for ferrous scrap since steel export is active due to weak won rate, analyzed Japanese scrap dealer.