Higher Export Price Supports Japan Ferrous Scrap Price

Ferrous scrap market price is firm in Japan while the export price is higher than the domestic price. The export volume decreased compared with the peak. However, the market price is likely to be supported by the higher export price, according to dealer sources.

The scrap export price is flat since last week when Chinese buyers are out of the market before Chinese New Year holiday while steel makers in South Korea have finished scrap purchase from Japan for immediate requirement. Japanese scrap export price is FOB 30,500-31,000 yen per tonne for H2 grade, which decreased by 1,000-1,500 yen from the peak in mid January.

Japanese ferrous scrap market price is flat when the price gap gets narrower between export price and purchase price by domestic electric arc furnace steel makers. The electric furnace steels’ purchase price is 27,500-28,500 yen per tonne for H2 grade around Tokyo and higher price is around 29,000 yen after some makers increased the price this week.