Japan Ferrous Scrap Export Price Hits 34,025 Yen/t, Kanto Tetsugen’s Tender

Japanese ferrous scrap export price hit FAS 34,025 yen per tonne for H2 grade at the export tender for April shipment held by Kanto Tetsugen on Wednesday, which was 3,798 yen higher than a month earlier. The price is slightly higher than the purchase price by local electric furnace steel makers. A scrap dealer source said the higher export price is expected to support local market price.

They ship total 20,000 tonnes of scrap, increasing by 7,000 tonnes from the previous tender. A exporter won the tender at 34,050 yen per tonne at 10,000 tonnes, B exporter won the tender at 34,050 yen at 5000 tonnes and C exporter won at 33,950 yen at 5,000 tonnes.

Thirteen exporters of 16 eligible companies submitted 17 bids. The total offer increased by 7,000 tonnes to 93,000 tonnes by May 15 from the previous tender.

Local steel makers’ purchase price of ferrous scrap is 33,000-34,000 yen per tonne and some pay as high as 34500 yen for H2. The price increased by 1,000-1,500 yen this week due to tight scrap supply.

New export contracts are slow to East Asia. The offer price by South Korean steel makers is FOB US$ 33,500 yen per tonne, higher than the peak level of mid January. However, large dealers or shippers are cautious to conclude the new contracts since the exporting price doesn’t balance with their purchasing price.