Japan Ferrous Scrap Export Price Drops at Tenders in Tokyo, Osaka

Japanese ferrous scrap export price decreased by more than 5,000 yen per tonne at monthly tenders in Tokyo and Osaka on Tuesday compared with a month earlier level. The price hit the lowest level since December 2009 due to lowering international price under economy uncertainty.

Successful averaged bid was FAS 25,702 yen per tonne for H2 grade at tender by Kanto Tetsugen, which was 5,817 yen lower than previous tender on May 10. The price was the lowest level since 25,758 yen for December 2009 order. Kanto Tetsugen sees the market shows no positive factor to support the price.

The bids were between 26,560 yen per tonne to 25,300 yen for 4 winners. They will ship 18,000 tonnes of scrap by August 15. Thirteen exporters submitted 20 bids with total 103,000 tonnes.

Another successful averaged bid was FAS 25,360 yen per tonne at tender held by Kansai Tetsugen, which was 6,020 yen lower than previous tender level on May 15. Sumikin Bussan won the tender to ship the scrap by July 20.

Japanese exporters’ export price is FOB 26,000-27,000 yen per tonne for H2 grade for South Korean buyers recently. Japanese exporters pay FAS 25,000-25,500 yen around Tokyo bay. Local electric furnace steel makers pay 26,000-27,000 yen around Tokyo and Osaka.