Japan Ferrous Scrap Export Price Downs at Kanto Tetsugen Tender

Japanese ferrous scrap export price hit averaged FOB 37,239 yen per tonne for H2 grade for April shipment at monthly tender held by Kanto Tetsugen on Wednesday, which was 747 yen lower than previous tender level on February 9. The results could pressure on domestic market price when the price is around 2,000 yen lower than scrap purchase price by local electric furnace steel makers.

An exporter won the tender at 37,320 yen per tonne to ship 6,000 tonnes of scrap. Other three exporters won the tender at 37,250 yen, 37,220 yen and 37,150 yen respectively to ship each 5,000 tonnes. The tender volume was total 21,000 tonnes, which was same volume as previous tender. They will ship the volume by May 16.

Fifteen exporters out of 16 eligible companies submitted 17 bids for the tender. The total bid volume was 86,000 tonnes, which was 2,000 tonnes lower than previous tender. Six bids of them priced more than 37,000 yen per tonne.

Local electric furnace steel makers pay 39,000-40,500 yen per tonne for H2 grade scrap around Tokyo. The price keeps the level since late February while some makers adjusted the price marginally.

Japanese scrap export price is around FOB 38,500 yen per tonne for H2 grade to Asian buyers recently. A dealer source said the export price is expected to decrease when domestic market price is peaking.