Japan Ferrous Scrap Export Tender Price Hits FAS 37,986 yen/t

Japanese ferrous scrap export price hit FAS 37,986 yen per tonne for H2 grade at averaged successful bid for March shipment export tender held by Kanto Tetsugen on Wednesday. The price was 615 yen lower than previous tender on January 14. Despite of the lower price, local scrap dealers expect the domestic price could keep the level when the export price was same level as local electric furnace steel makers’ purchase price around Tokyo.

An exporter won the tender at 38,550 yen per tonne to ship 6,000 tonnes of scrap. Other 3 exporters got the orders at 37,820 yen, 37,750 yen and 37,710 yen respectively for 5,000 tonnes shipment each. They will ship the scrap by April 15. The total contract volume was 21,000 tonnes, which was 4,000 tonnes higher than previous tender.

Fourteen exporters out of 16 eligible exporters submitted 21 bids for the tender. The total bid volume was 88,000 tonnes, which was 7,000 tonnes lower than previous tender. Twelve bids priced more than 37,000 yen per tonne.

Local electric furnace steel makers pay 36,500-38,000 yen per tonne for H2 grade scrap around Tokyo. They keep the price since late January. The export price is FOB 38,000-38,500 yen for East Asia. A dealer source said the export market apparently turned into buyers’ market when US export price decreased.