Japan Ferrous Scrap Export Price Lifted by US Strong Price

US ferrous scrap export price surged to Turkey. The price is around CFR US$ 443 or 37,200 yen per tonne for mix of No.1 and No.2 heavy melt scrap from East Coast, which is about US$ 40 higher than the price at the beginning of December, according to Japanese trading firm. The scrap export price in Asia is lifted by strong US price. The Japanese export price would increase, the trading firm said.

US ferrous scrap composite price increased to US$ 372.17 per tonne in second week of December, which represented more than US$ 370 for the first time in about 8 months. The price turned upward when Turkish steel makers increased the scrap purchase volume from US after Thanksgiving Day and US domestic supply decreased.

Japanese scrap export price also increased to South Korea. The bid of South Korean electric furnace maker, Dongkuk Steel was FOB 33,500 yen per tonne for H2 grade this week, which increased by 2,000 yen from the price at the beginning of December. However, the firm increased the bid to 34,500 yen to secure purchasing volume.

The South Korean steel makers including SeAH Besteel, POSCO and Hyundai Steel increased the scrap purchasing price by 5,000-20,000 won or 400-1,600 yen per tonne from domestic market last week after price hike in early December. The makers increased the purchase price when they are not able to secure enough volume scrap from Japan. The sheet producing electric furnace steel makers pay more than 500,000 won for new cutting scrap this week.