Higher Kanto Tetsugen’s Tender to Support Local Scrap Market

Japanese ferrous scrap export price hit FAS 27,591 yen per tonne for H2 grade at successful bid for monthly tender for November order held by Kanto Tetsugen on Wednesday. The price is 2,973 yen lower than previous tender on October 12 while the price is still higher than local electric furnace steel makers’ purchase price. Local dealers expect the relative higher price would stimulate the market to hit bottom.

An exporter won the tender at 27,600 yen per tonne for 8,500 tonnes shipment. Other exporters won the tender at 27,590 yen and 27,580 yen respectively to ship 6,000 tonnes each. Total shipping volume due January 15 was 20,500 tonnes, which is 8,000 tonnes higher than previous tender. Thirteen exporters out of 16 eligible companies submitted 24 bids for the tender.

Japanese scrap export price has decreased for East Asia since late September. South Korean steel makers reduced the bids to lead the trend but the makers show sign to increase the bids in the week.

Local steel makers’ scrap purchase price is 26,000-27,000 yen per tonne for H2 grade on Wednesday around Tokyo. Domestic scrap demand decreases when domestic integrated steel makers reduce the scrap volume. However, the higher tender results than local steel makers’ purchase price would support the local price. A dealer source expects no major decrease for local makers’ purchase price.