Kanto Tetsugen’s Ferrous Scrap Export Price Hits First Rise in 4 Months

Japanese ferrous scrap export price hit averaged FAS 29,417 yen per tonne for H2 grade for September shipment at successful bid at monthly tender held by Kanto Tetsugen on Tuesday, which was 2,359 yen higher than tender in July and record first month to month increase in 4 months. The price, which is 500-1,000 yen higher than local market price, could lift local electric furnace steel makers’ purchase scrap price.

An exporter won the tender at 29,530 yen per tonne for H2 grade to ship 6,000 tonnes by October 15 while another 2 exporters won the tender at 29,400 yen to ship 6,000 tonnes and at 29,360 yen to ship 10,000 tonnes respectively. The total contract volume was 22,000 tonnes, which was 9,000 higher than previous tender.

Fourteen exporters out of 16 eligible companies submitted 24 bids. The total offer volume was 147,000 tonnes, which was 56,000 tonnes higher than tender in July. The price was more than 29,000 yen per tonne for 11 bids and another 12 bids were priced at more than 28,000 yen.

Local electric furnace steel makers around Tokyo pay 28,000-29,500 yen per tonne for H2 grade scrap, which is same level as last week level. The price level is flat since late July but some makers pay more for spot based purchase.

Japanese scrap export price is FOB 29,000-29,500 yen per tonne for H2 grade for East Asian buyers. South Korean and Taiwanese buyers resumed the purchase from Japan since late July and Japanese exporters increase the new order receipt gradually.