Japan Ferrous Scrap Price Downs at Monthly Tender

Japanese ferrous scrap export price hit averaged FAS 33,771 yen per tonne for H2 grade at monthly export tender for July shipment held by Kanto Tetsugen on Thursday, which was 1,257 yen lower than previous tender on May 11. The dealers expect the tender would support local market when the successful bid was same level as purchase price by local electric furnace steel makers.

The averaged price decreased for 5 months in a row. An exporter won the tender at 33,820 yen per tonne to ship 3,000 tonnes. Another exporter won the tender at 33,800 yen to ship 3,000 tonnes. Third and fourth winner won the tender at 33,750 yen and 34,750 yen respectively to ship 5,000 tonnes each. They ship the scrap by August 15. The total volume was 16,000 tonnes for the tender, which was 2,000 tonnes lower than previous tender.

Thirteen exporters out of 16 eligible companies submitted 17 bids for the tender. Their offer volume was total 75,000 tonnes, which was 26,000 tonnes higher than previous tender. Ten bids of them were priced at more than 33,000 yen per tonne.

Scrap export transaction price is around FOB 34,500 yen per tonne for H2 scrap for East Asia at end of May. South Korean steel buyers purchase Japanese scrap but the transaction price is flat in June.

Local electric furnace steel makers pay 33,500-35,000 yen per tonne for H2 grade scrap around Tokyo. The price decreased by 6,000-7,000 yen since end of April due to lower export price for East Asia.

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