Japan Ferrous Scrap to Decline More

Japanese ferrous scrap export price continues decreasing to South Korea. The price declined by 300 yen to FOB 28,200 yen per tonne for H2 grade to Hyundai Steel last week while the new cutting scrap price was 33,500 yen, according to Japanese trading firm source. The lower price could impact on the domestic market price.

The averaged export price was FAS 27,350 yen per tonne for H2 grade for the shipment in November at the joint tender held by scrap dealers’ group around Tokyo on Wednesday. Hyundai Steel’s bid was FOB 28,000 yen.

Japanese electric furnace steel makers’ purchase price declined to 28,000-29,000 yen per tonne for H2 grade in Tokyo and to 28,500-30,000 yen in Osaka when Japanese largest electric furnace steel maker, Tokyo Steel Manufacturing reduced the scrap purchase price 3 times in October and local electric furnaces followed the move. The domestic price would decline more while the export price continues decreasing and yen exchange rate remains high, according to trading firm.