Japan Ferrous Scrap Export Price to South Korea Slightly Rises

Japanese ferrous scrap export price to South Korea is increasing slightly. The latest contract price is around FOB 35,500-36,000 yen per tonne for H2 grade to Daehan Steel, increasing by 500-1,000 yen from last week, according to Japanese large dealer source. The contacted volume was about 20,000 tonnes. The dealer source analyses U.S. ferrous scrap exporters recently tend not to contract export with South Korean and Chinese importers for April shipment with an expectation for scrap price upsurge. South Korean importers seem to be continuing import from Japan due to short delivery lead time.

U.S. ferrous scrap export price to South Korea is around CFR US$ 486 per tonne for HMS or no.1 grade currently. Japanese ferrous scrap price is lower than U.S. ferrous scrap price including marine transportation and inspection costs, according to Japanese dealer source.

In Japan, scrap dealers are raising purchase price when new business negotiations are starting after Japan Earthquake. The export price from Tokyo Bay is slightly increasing, too. Japanese large dealers and exporters are raising offer prices to FOB 36,500-37,500 yen per tonne to South Korea. Japanese dealer source said higher export price may pull up domestic ferrous scrap market price.