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

Japanese ferrous scrap export price hit averaged FAS 25,758 yen per tonne for H2 grade for January shipment at monthly export tender held by Kanto Tetsugen on Wednesday, which was 1,494 yen higher than previous tender price. The price is 500-1,000 yen higher than purchase price by local electric furnace steel makers. Japanese scrap dealers expect the higher export price could lift local market price.

Four exporters won the tender with bids at 26,000 yen per tonne, 25,750 yen, 25,700 yen and 25,580 yen each. They will ship 5,000 tonnes each or total 20,000 tonnes by February 15, which is 5,000 tonnes lower than previous tender.

Twelve exporters out of 16 eligible companies submitted 20 bids for the tender, of which 11 bids were more than 25,000 yen per tonne. The total bid volume was 99,000 tonnes, which was 13,000 tonnes higher than previous tender.

Local electric furnace steel makers around Tokyo pay 24,000-25,000 yen per tonne for H2 grade scrap. The price is almost flat since late November while some makers adjust the price and decreased the price slightly.

Japanese scrap export price is around FOB 26,000 yen per tonne for H2 grade. Hyundai Steel of South Korea increased Japanese scrap import price slightly in the week. Kanto Tetsugen’s tender price is higher than domestic makers’ purchase price and impacts on domestic market through early January due to the scrap shipping at the price.