Japan Ferrous Scrap Export Price Rises at Monthly Tender

Japanese ferrous scrap export price hit FAS 21,636 yen per tonne for H2 for May shipment at averaged successful bid for monthly export tender held by Kanto Tetsugen on Thursday. The price was 4,110 yen higher than previous tender. The tender result, which is 3,000-4,000 yen higher than purchase price by domestic electric furnace steel makers, is expected to impact on domestic market.

A trader won the tender with 22,050 yen per tonne of bid to get 5,000 tonnes order while second bid was 21,550 yen for 10,000 tonnes, third bid was 21,530 yen for 5,000 tonnes and fourth bid was 21,500 yen for 5,000 tonnes. The total volume of 25,000 tonnes was as large as record volume at previous tender. They will ship the scrap by June 15.

Twelve exporters out of eligible 16 companies submitted 13 bids for the tender. They offered 76,000 tonnes of export, which was 15,000 tonnes higher than previous tender.

Recent scrap export price is around FOB 22,000 yen per tonne for H2 grade, which is 2,000 yen higher than level in the beginning of April. A dealer source said Taiwanese buyers increase the appetite for Japanese scrap recently while Chinese buyers cooled down from heated purchase in March.

Kanto Tetsugen recognizes positive sign from the market in the tender result. The scrap dealers’ group expects the higher export price could support domestic market in short term.