Higher Japan Ferrous Scrap Export Price

Japanese ferrous scrap export price increased for South Korea additionally. The price reached around FOB 37,500 for H2 grade to Hyundai Steel, which is 1,500 yen higher than previous week, according to Japanese trading firm source. The price is 2,500 yen higher than the level in the beginning of the month. The export price reached around 41,500 yen for HS and around 42,500 yen for new cutting scrap.

Japanese scrap exporters offered FOB 33,000-34,000 yen per tonne before. However, the exporters increase the offer when they reduced the existing order to ship, higher transaction for new export order and higher ocean freight shipment from Tokyo to Osaka area.

With the higher export transactions, domestic scrap market price also increases. Tokyo Steel Manufacturing increased the scrap purchase price by total 2,000 on April 8 and 12 at the all plants. The demand condition is uncertain in May but the dealers expect the higher export price would support the domestic market.

East Asian buyers increase US scrap import recently. Hyundai Steel purchased the scrap at around CFR US$ 480 per tonne for No.1 heavy melting scrap last week, according to Japanese trading source. The source said the higher transaction price is partly due to higher export price from Japan. Hyundai Steel also purchased the US scrap additionally in the week and other buyers try to secure US scrap for China and Southeast Asia.

Japanese scrap dealers market price also increases under the situation. Local dealers’ scrap purchase price is around 30,000 yen per tonne for H2, around 31,800 yen for H1 and 33,500 yen for HS grade including freight to the dealers around Tokyo. Scrap dealers around Osaka pay around 29,000 yen for H2 grade scrap.