Japan Ferrous Scrap Export Price Shows First Drop in 2 Months

Japanese ferrous scrap export price decreased for East Asia market for the first time in about 2 months. The price decreased by 1,000 yen to around FOB 31,500 yen per tonne for H2 grade to Dongkuk Steel of South Korea, according to Japanese trade firm source. Hyundai Steel of South Korea didn’t open the tender last week and in Japan, the export tender was unsuccessful in Osaka on Monday. Ferrous scrap dealers reduced the scrap purchase price and volume around Tokyo.

Japanese export price to South Korea is around FOB US$ 370 per tonne for H2 grade while US export price is around CFR US$ 400. Due to higher yen exchange rate, South Korean steel makers increase US scrap import and cheaper Russian scrap, according to the trade firm source.

Hyundai Steel plans to purchase Japanese scrap through tender on Thursday. However, some Japanese scrap interests expect Japanese exporters couldn’t get order from offshore buyers due to the higher price when Japanese scrap shipping price is slightly more than FAS 30,000 yen per tonne from Tokyo bay.