Japan Ferrous Scrap Export Price Downs by 1,500 yen/t

Japanese ferrous scrap export price hit FAS 35,028 yen per tonne for H2 grade at a monthly export tender for June shipment held by dealers’ group on Wednesday. The price was 1,537 yen lower than the previous tender on April 12 and became 500-1,000 yen lower than local electric furnace steel makers’ scrap purchasing price around Tokyo. One scrap dealer commented the export price down might weaken local scrap market price more.

An exporter won the tender at 35,600 yen per tonne for 5,000 tonnes scrap shipment. Other exporters won the tender at 35,000 yen for 3,000 tonnes, 34,800 yen for 5,000 tonnes and 34,700 yen for 5,000 tonnes. The total tender volume was 18,000 tonnes, 8,000 tonnes hihger than the previous tender.

Eleven exporters out of eligible 16 companies submitted 11 bids for the tender. The offers totaled 49,000 tonnes, higher by 4,000 tonnes than the previous tender. The exporters will ship the scrap by July 15.

Local electric furnace steel makers around Tokyo presently pay 35,500-36,500 yen per tonne for H2 grade scrap. Some pay as high as 37,000 yen. The price downed by 4,000-5,000 yen since late April to reflect weak scrap export market.