Ferrous Scrap Export Price Drops to 23,146 Yen/t, Tokyo

Japanese ferrous scrap export price was set at FAS 23,146 yen per tonne for H2 grade at an export tender for November shipment held by Kanto Tetsugen on Tuesday. The price decreased by 6,211 yen from the previous tender, while which was higher than domestic electric furnace steel makers’ purchase prices. Kanto Tetsugen expects local scrap market price could hit bottom around Tokyo if the latest export tender price level penetrates as new contracted export price.

Exporter A won the tender at 23,200 yen per tonne for 11,000 tonnes, exporter B at 23,150 yen for 6,000 tonnes and exporter C at 23,100 yen for 5,000 tonnes. They ship total 22,000 tonnes of scrap by November 30. Eleven exporters of 16 eligible companies submitted 13 bids and 3 bids were more than 23,000 yen per tonne. The total offer was 70,000 tonnes, lower by 4,000 tonnes than the previous tender.

Domestic electric furnace steel makers pay 21,500-23,000 yen per tonne for H2 grade, lowering by 6,500-7,500 yen from the peak level in third week of September. The export price is around FOB 24,000-24,500 yen per tonne for H2 in recent transactions, slightly higher than local electric furnaces’ purchase price.