South Korean Buy Lifts Japan Ferrous Scrap Export Price

Japanese ferrous scrap export price increase for East Asia while the domestic market experiences adjustment. The export price increased to 26,000 yen per tonne for H2 grade to South Korea, which is 500 yen higher than previous week level and around 3,000 yen higher than recent bottom. Japanese exporters offer more than FOB 27,000 yen.

The export price increased partly due to Hyundai Steel’s purchase last week. South Korean steel makers shift to Japanese scrap from higher priced US scrap. A trading firm source said the export shipping from Japan will continue for East Asia through the year.

Hyundai Steel purchased around 100,000 tonnes of Japanese scrap, according to Japanese industry sources. South Korean steel makers are expected to keep purchasing Japanese scrap when the steel makers’ steel export keeps high level under lower won rate.

Higher US scrap price also impacts on South Korean steel makers’ purchase when US scrap offer is CFR US$ 330-340 per tonne for Chinese buyers, which is US$ 10-20 higher than last week level. South Korean government plans scrap purchase tender with around 20,000 tonnes of purchase in the week for stockpiling.