Higher Ferrous Scrap Export Price in Osaka

Ferrous scrap export price was set at average FAS 24,960 yen per tonne for H2 from Osaka Bay at an export tender held by Osaka based ferrous scrap dealers’ group, Kansai Tetsugen, on Thursday. The price increased by 140 yen from the previous tender on November 13th. Domestic demand for ferrous scrap is likely to keep inactive when electric furnace steel makers are expected to continue low operations in early 2010. Consequently, dealers increased export contracts to total 10,000 tonnes at the latest tender from initially scheduled 5,000 tonnes.

Osaka based scrap dealer, Arae Shokai won the tender to ship 5,000 tonnes scrap at 25,020 yen from January 7th to January 30th. JFE Shoji Trade Corporation won the tender to ship 5,000 tonnes at 24,900 yen. The averaged bid was 23,925 yen per tonne, higher by 125 yen than the previous tender. Fourteen traders out of 17 eligible firms submitted.

Ferrous scrap purchase price by domestic electric furnaces is 24,000-25,000 yen per tonne around Osaka. Ferrous scrap market price has lowered since late November though Tokyo Steel Manufacturing and other electric furnaces set their scrap purchasing price unchanged. A dealer source said domestic market price could be supported by stable export when the export tender increased to 10,000 tonnes and the tender price was higher than the local price.