Japan Ferrous Scrap Export Price Set at 29,368 Yen/t, Kanto Tetsugen’s Tender

Japan ferrous scrap export price became averagely FAS 29,368 yen per tonne for H2 grade at the export tender for November shipment held by Kanto Tetsugen on Wednesday. The average price upped by 2,018 yen from the previous tender. A scrap dealer source said the export price is slightly higher than local electric furnaces’ scrap purchasing price and the local market price may be pulled up by export price. They ship total 21,000 tonnes of scrap by January 15, 2011. The successful bid volume was lower by 4,000 tonnes than at the previous tender.

Four bidders won the tender with the bids at 29,500 yen per tonne for 5,000 tonnes, 29,450 yen for 5,000 tonnes, 29,330 yen for 5,000 tonnes and 29,920 yen for 6,000 tonnes. Fifteen exporters out of 16 eligible exporters submitted 25 bids for the tender and one exporter passed up. The total bid volume increased by 41,000 tonnes to 121,000 tonnes. Seven exporters bid for over 29,000 yen.

Local electric furnace makers’ purchasing price is 28,000-29,000 yen per tonne for H2 grade and some pay as high as 29,500 yen around Tokyo. The purchasing price rose this week thanks to uptrend of export price to East Asia. Newly contracted export price is around FOB 29,000 yen for H2 grade, increasing by around 1,000 yen from mid October. A scrap dealer source points out the export price seems to have surged temporarily and offshore demand hasn’t increase significantly.