Japan Ferrous Scrap Export Price Increases by 1,273 yen at Tender
Japanese ferrous scrap export price increased to averaged FAS 23,750 yen per tonne for H2 for September shipment, up by 1,273 yen or 5.6% from previous month, at winner price of monthly tender held by Kanto Tetsugen on Thursday. The bidders won 10,000 tonnes of scrap export for the tender. On the other hand, scrap export price decreased to around FAS 24,000 yen from Tokyo bay at resent contract from 28,000 yen in the early August due to slower buy from Asian steel makers. The export price is likely to decrease with fewer Asian orders.
A firm won scrap export order at 24,000 yen per tonne for 5,000 tonnes and another won order at 23,500 yen for 5,000 tonnes at the tender, which had 5 bids by 4 firms and 9 refusers. The bidders offered 40,500 tonnes, which decreased by 23,500 tonnes from previous month. Averaged bid price increased by 1,178 yen to 22,869 yen with lowest bid at 22,000 yen.
Kanto Tetsugen said the tender will adjust scrap supply balance in Tokyo, though it could have negative impact on local market if the price would decrease when recent domestic market is 27,000-28,000 yen per tonne. The scrap dealers’ body in Tokyo said local scrap market faces adjustment next week under summer operation idles by local makers. Kanto Tetsugen sees market depends on orders from offshore makers.
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