Japan Ferrous Scrap Export Price Downs at Kanto Tetsugen’s Tender

Kanto Tetsugen held a monthly export tender on Wednesday and the ferrous scrap export price from Tokyo Bay lowered by 2,569 yen to FAS 36,183 yen per tonne for H2 grade for June shipment compared with the previous tender. The price decreased for the first time in 3 months and became lower by 2,000-2,500 yen than local electric furnaces’ scrap purchase price. A dealer source said domestic scrap market price may downturn in balance with the latest export price.

The first bid was FAS 36,250 yen per tonne at 10,000 tonnes for the tender. The other bids to won the tender were 36,200 yen at 5,000 tonnes, 36,030 yen at 5,000 tonnes. Three trading firms won total 20,000 tonnes to ship by July 15. The total volume decreased by 6,000 tonnes from the previous tender. All 16 eligible exporters submitted 15 bids for the tender. Three of the tenders offered more than 36,000 yen. The offer volume totaled 82,000 tonnes of export, lower by 18,000 tonnes from the previous month.

Local electric furnace steel makers presently purchase H2 at 38,000-38,500 yen per tonne and some pay as high as 39,000 yen. The price hasn’t changed largely since late April though some makers raised the purchase price. On the other hand, the export price to East Asia reached FOB 39,000 yen in late April but turned weak when offshore importers are decreasing offers.