Japan Ferrous Scrap Export Price Hits FAS 23,615 yen/t

Ferrous scrap export successful bit was averaged FAS 23,615 yen per tonne for H2 grade at the monthly tender for June shipment held by Kanto Tetsugen on Tuesday, which was 1,979 yen higher than previous tender. The price is around 2,000 yen higher than purchase price by local electric furnace steel makers. Such higher export price could support domestic market price.

Four bidders won the tender with the bids at 23,700 yen per tonne, 23,650 yen, 23,600 yen and 23,510 yen respectively. The bidders will ship each 5,500 tonnes of scrap by July 15. The total volume of 22,000 tonnes was 3,000 tonnes lower than previous tender.

Fifteen exporters out of 16 eligible exporters submitted 24 bids for the tender. Twelve bids were more than 23,000 yen per tonne. The total bid volume was 141,500 tonnes, which was 65,000 tonnes higher than previous tender.

Local electric furnace steel makers keep the scrap purchase price at 21,000-22,000 yen per tonne for H2 since late April. The export price from Tokyo bay is around FOB 23,000-24,000 yen. A trading firm source said Taiwanese buyers started to show appetite for Japanese scrap since last week while they were away from the market.

Kanto Tetsugen expects the higher export price would lift domestic market price by end May when the domestic price is lower than the successful bids.