Japan Ferrous Scrap Export Price Surges to FAS 33,319 Yen/t

Kanto Tetsugen, a ferrous scrap dealers ‘group around Tokyo, held the latest export tender for September shipment on Wednesday and the averaged successful bid decreased by 1,953 yen to FAS 33,319 yen per tonne for H2 from the previous tender. The price decreased for the first time in 2 months and was the level as low as local electric furnace steel makers’ scrap purchasing price due to decreased export price to South East Asia. The successful bid totaled 20,000 tonnes, increasing by 3,000 tonnes against August shipment. One dealer source said export price may decrease when local electric furnace makers can decrease purchase price of ferrous scrap due to low bid price.

An exporter won the tender at 33,610 yen and at 4,000 tonnes. Another exporter won the tender at 33,500 yen shipping 5,000 tonnes, another exporter won at 33,450 yen shipping 3,000 tonnes, another exporter won at 33,110 yen shipping 4,000 tonnes and another exporter won at 33,050 yen shipping 5,000 tonnes each by October 15. Twelve exporters out of 16 eligible exporters submitted 16 bids for the tender while 4 exporters rejected bid. The 9 bids were higher than 35,000 yen.

Generally contracted ferrous scrap export price to East Asia is currently FOB 34,500 yen per tonne for H2, decreasing by 1,500 yen from the middle of July when South Korea and South East Asia market price is decreasing.

On the other hand, electric furnaces around Tokyo paid 34,000-35,000 yen for H2. The price decreased by 1,000-1,500 yen from the end of middle of July.