Japanese Ferrous Scrap Export Price Continues Rising to Korea

Japanese ferrous scrap export price is increasing to South Korea. Hyundai Steel of South Korea recently concluded a contract to import Japanese H2 grade at around FOB 26,900 yen per tonne, according to Japanese trader source. The contract volume was approximately 40,000 tonnes. South Korean steel makers under full productions continue active scrap procurement from Japan and USA in December.

Japanese domestic market price keeps flat at around 23,500-25,500 yen per tonne for H2 grade. The new export contract price is 500-1,000 yen higher than the domestic price. A scrap dealer source said Japanese scrap suppliers may increase export ratio when domestic demand for ferrous scrap stays stagnant.

Hyundai Steel’s contract price surged by about 500 yen from the previous week and by about 1,500 yen from the recent bottom in early December. Meanwhile, a source of Japanese trading house said Japanese H2 export price to South Korea seems to hit the peak at around 27,000 yen in comparison with US scrap export price to South Korea.