Japan Ferrous Scrap Export Tender Price Continues Lowering

Japanese ferrous scrap averaged export price became FAS 28,070 yen per tonne for H2 grade at successful bid for a monthly export tender for July shipment held by scrap dealers’ group on Wednesday. The price lowered by 8,113 yen from the previous tender, which downed for 2 months in a row and represented below 30,000 yen for the first time since December 2009. The export price became lower by 3,000-4,000 yen than local electric furnace steel makers’ purchasing price and, that is, the price is supposed to decline more.

The total contract volume was 15,000 tonnes, decreasing by 5,000 tonnes from the previous tender. An exporter won the tender at 28,200 yen per tonne to ship 5,000 tonnes scrap. Another exporter won the tender at 28,010 yen for 5,000 tonnes and the other exporter at 28,000 yen for 5,000 tonnes shipped by August 15.

Eight exporters out of 16 eligible companies submitted 9 bids with 45,000 tonnes for the tender, which was lower by 37,000 tonnes than the previous tender. Three bids were more than 28,000 yen per tonne.

Electric furnace steel makers around Tokyo presently purchase H2 at around 31,000-32,000 yen per tonne and some pay as high as 32,500 yen. The price has decreased by 6,000-7,000 yen since the peak in late April along export price down and slow shipment from Tokyo Bay.

The latest export contract price was partially FOB 31,000 yen for H2 shipped to East Asia at the end of last week. South Korean steel makers are mainly offering Japanese ferrous scrap. However, the demand is not so strong to pay even high price.