Japan Ferrous Scrap Export Price Ups by 1,100 Yen/t, Tokyo

Japanese ferrous scrap export price became FAS 24,264 yen per tonne for H2 for December shipment at averaged successful bids for a monthly export tender held by Kanto Tetsugen on Wednesday. The price was 1,100 yen higher than the previous tender while slightly lower than local electric furnace steel makers’ purchase price. The successful bids increased by 3,000 tonnes to 25,000 tonnes over the previous tender. A dealer source said scrap supply is likely to keep tight with large successful bid amount. The export price pulls up scrap price in domestic market.

Tenth exporters out of 16 eligible firms submitted 16 bids for the tender while 6 firms declined to join the tender. The 4 bids exceeded 24,000 yen and the total bids were 86,000 tonnes, hugher by 16,000 tonnes than the previous tender.

Local electric furnaces’ purchasing price surged by 1,000 yen to 24,000-25,000 yen per tonne from last week and some pay as high as 25,500 yen around Tokyo. On the other hand, the export price is FOB 24,000 yen and some contracts price reaches 25,000 yen. Overseas steel makers are offering Japanese ferrous scrap. However, the export price is lower than domestic market price.