Kanto Tetsugen Ferrous Scrap Export Tender Hits FAS 32,482 yen/t

Japanese ferrous scrap export price hit FAS 32,482 yen per tonne for H2 grade at monthly tender held by Kanto Tetsugen on Friday, which was 1,640 yen higher than previous tender on February 9. The price is in line with purchase price by local electric furnace steel makers around Tokyo under the downward trend. The scrap dealers’ group expects the tender results would support local scrap market.

An exporter won the tender at 32,700 yen per tonne for 5,000 tonnes order. Other exporters won the tender at 32,500 yen, 32,410 yen and 32,400 yen for each 5,000 tonnes, 5,000 tonnes and 10,000 tonnes of scrap shipment. They ship total volume 25,000 tonnes by May 15. The volume is compared with 18,000 tonnes for previous tender.

Twelve exporters out of 15 eligible companies submitted 22 bids. The total bids volume was 108,000 tonnes. The all bids priced more than 30,000 yen per tonne.

The results were higher than expected while the market price was expected to decrease. The results were partly due to high priced existing order with FOB 33,500-34,000 yen per tonne for South Korea and lower yen rate. Recent scrap export transaction is around FOB 32,500 yen per tonne for South Korea. Local electric furnace steel makers pay 32,500-33,500 yen per tonne for H2 grade around Tokyo, which decreased by 500 yen last week. The price is expected to decrease more.