Fe Scrap Export Price Hits Year Record at Osaka Dealers’ Tender

Japanese ferrous scrap export price hit yearly record FAS 25,700 yen per tonne for H2 at a tender held by ferrous scrap dealers’ association in Osaka on Monday. The export price increased by 2,790 yen per tonne compared with Kanto Tetsugen’s tender held in Tokyo on 3 June. JFE Shoji Trade Corporation made a successful bid at 5,000 tonnes for shipment during 13 July – 7 August.

Japanese integrated steel makers restarted ferrous scrap procurement from the market. Japanese special steel makers relaxed the production cut due to increasing automobile output. On the other hand, other electric furnace steel makers still continue to reduce the output by 40-50% from a year earlier when the demand for building materials keeps low.

Moreover, Chinese ferrous scrap importers changed the stance to wait and see though they had increased the purchase volume of Japanese and American ferrous scrap. Consequently, Japanese large dealer said the market price became agglutinative.

A dealer source said the export price by the association is the same level or over against the purchase price of domestic electric furnaces and domestic market price could sustain the current level at least.