Kanto Tetsugen’s Fe Scrap Export Tender Price Downs to 27,350 Yen/t

Japanese ferrous scrap export price hit averaged FAS 27,350 yen per tonne for H2 grade for November shipment at successful bids in a monthly tender held by Kanto Tetsugen on Wednesday. The price was lower by 2,765 yen than the previous tender’s price. The price is lower than local electric furnace steel makers’ scrap purchasing price. A local scrap dealer says the regional market price is likely to keep downward. The total contract volume was 25,000 tonnes, increasing by 15,000 tonnes from the previous tender.

A exporter won the tender at 27,700 yen per tonne for H2 grade to ship 5,000 tonnes by December 15. B exporter’s successful bid price was 27,350 yen for 5,000-tonne shipment and C exporter’s price was 27,300 yen for 5,000 tonnes. Other 2 exporters won the tender at 27,200 yen to ship 5,000 tonnes. Thirteen exporters out of 16 eligible companies submitted 17 bids. The total offer volume was 81,000 tonnes, as much as the previous tender. The price was more than 27,000 yen per tonne for 9 bids.

Electric furnace steel makers around Tokyo presently purchase H2 at 28,500-29,500 yen and some pay as high as 30,000 yen. The makers have lowered their purchasing price step by step since scrap export price continued downward. Newly contracted export price is around FOB 28,500 yen, lower by 4,000 yen than the recent peak in late August. Offshore demand for Japanese ferrous scrap maintains stable mainly from South Korea. However, weak domestic market price and strong yen trend impacts the exporting price.