Fe Scrap Export Price Set at FAS 23,150 Yen/t in Osaka’s Tender

Japanese ferrous scrap export tender price was contracted at FAS 23,150 yen per tonne for H2 grade at the export tender for November 2nd-30th shipment held by scrap dealers’ association in Osaka (named Osaka Kinzoku Recycle Kogyo Kyodo Kumiai) on Monday. Arae Shokai won the tender at 5,000 tonnes.

This tender price is as same as the scrap export tender held by Kanto Tetsugen on Wednesday for November shipment. A dealer source said the tender price is higher than expected when South Korean steel makers lowered their offer price to around FOB 23,300 yen per tonne last week. Another dealer said domestic ferrous scrap market price may hit bottom thanks to higher export price.

Domestic market price keeps flat from last week since Tokyo Steel Manufacturing set its scrap purchasing price unchanged after October 16th. A large dealer said ferrous scrap supply and demand are balanced due to low generation. The market price could sustain the current level thanks to higher overseas market price.