Higher Japan Ferrous Scrap Export Price at Joint Tender in Osaka

Japanese ferrous scrap export price hit FAS 33,520 yen per tonne for H2 grade at monthly joint tender held by Osaka based ferrous scrap dealers’ group on Thursday. The price was 2,720 yen higher than previous tender on February 3 and around 1,000 yen higher than Kanto Tetsugen’s tender on March 9 partly due to lower yen rate. The higher export tender could support domestic market price, which started to decrease earlier the month.

JFE Shoji Trade Corporation won the tender to ship 5,000 tonnes of scrap by April 20. Thirteen exporters out of 14 eligible companies submitted 13 bids for the tender. Four bids priced more than 33,000 yen per tonne.

Chinese buyers started to purchase Japanese scrap recently. A dealer said the buyers would prefer Japanese scrap to US scrap under lower yen exchange rate against US dollar.

Japanese electric furnace steel makers pay 32,500-33,500 yen per tonne for H2 grade around Tokyo and Osaka. The price decreased from the level in the beginning of the month but a dealer said the market price already shows sign to hit bottom.