Japan Ferrous Scrap Export Price Hits 31,940 Yen/t, Kanto Tetsugen’s Tender

Japanese ferrous scrap export price hit FAS 38,752 yen per tonne for H2 grade at the export tender for May shipment held by Kanto Tetsugen on Friday, which was 4,727 yen higher than a month earlier. A dealer source said domestic market price may rise when the export price is slightly higher than the domestic market price.

A exporter won the tender at 39,100 yen for 5,000 tonnes, B other exporter won the tender at 38,800 yen for 10,000 tonnes, C exporter won the tender at 38,550 yen for 6,000 tones and D exporter won at 38,550 yen for 5,000 tonnes. They ship total 26,000 tonnes of scrap, which increased by 6,000 tonnes from the previous tender. Fourteen exporters of 16 eligible companies submitted 19 bids. The total offer was 100,000 tonnes, which was 7,000 tonnes higher than the bids at the previous tender.

Local electric furnace steel makers presently pay 37,500-38,500 yen per tonne for H2 grade and some pay as high as 39,000 yen around Tokyo. These prices increased by about 5,000 yen from the previous month.

On the other hand, new export contract levels off for East Asia. Export contract price is FOB 38,500 yen per tonne. Large dealers or shippers didn’t contract by the gross when the export contract price didn’t balance with their cost prices.