Japanese ferrous scrap export price is expected to hit bottom soon for East Asia market. South Korean steel makers increase the demand to Japanese scrap under higher US scrap price while Japanese steel makers reduce the scrap purchase price. Japanese scrap export price decreased to FOB 29,500 yen per tonne for H2 grade in the week while Japanese exporters reject the lower price. A trading firm source expects offshore makers could increase the bid for Japanese scrap next week.
Japanese scrap market price peaked recently after Chinese buyers reduced the scrap purchase in August. South Korean scrap buyers reduced the bid to Japanese scrap and Tokyo Steel Manufacturing and Japanese other electric furnace steel makers reduced the scrap purchase price. US composite scrap price rebounded in last week of August while the buyers in China, South Korea and Taiwan the order when the market price turned into decrease in Japan. US composite price reached US$ 250 per tonne for the first time in 11 months. A trading firm source in Japan said South Korean buyers responded to the trend change after US scrap price rebound for the first time in 4 weeks. Japanese scrap dealers expect South Korean buy could support Japanese scrap market price when scrap supply could get tighter before major holiday week in mid-September.Japan Steel Scrap Composite Prices (Sangyo Press)
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