Lower Japan Ferrous Scrap Export Tender Results

Japanese ferrous scrap export price hit FAS 32,650 yen per tonne for H2 grade at the monthly export tender held by Kanto Tetsugen on Wednesday. The price was 168 yen higher than previous tender results on March 9 and in line with local electric furnace steel makers’ purchase price. A dealer source said the results could support domestic market price.

An exporter won the tender at 33,050 yen per tonne for the tender for 3,000 tonnes of shipment. Second exporter won the tender at 32,650 yen for 5,000 tonnes and third exporter won the tender at 32,530 yen for 10,000 tonnes of shipment. They ship the scrap by June 15. The total 18,000 tonnes volume is lower than 25,000 tonnes of previous tender.

Thirteen exporters out of 15 eligible companies submitted 20 bids for the tender. Seventeen bids priced more than 32,000 yen peer tonne and 7 bids priced 32,500 yen.

The price was relative lower when Japanese exporters book the export transactions at FOB 34,000-34,500 yen per tonne for South Korean buyers. The results were partly due to lower purchase price by exporters and Tokyo Steel Manufacturing.

Local steel makers pay 33,000-34,000 yen per tonne for H2 grade around Tokyo. The price was expected to decrease more while the price increased due to lower yen rate and higher steel output before higher electricity cost.