JMB reported that Japanese ferrous scrap export contract price to South Korea reached JPY 32,500 to JPY 33,000 per tonne FOB for H2 grade.
The export price had decreased by JPY 1,000 to JPY 1,500 to JPY 31,500 to JPY 32,000 FOB in late December 2011 as compared with the recent peak level. The price rebounded when some of South Korean electric furnace steel makers moved to procure Japanese ferrous scrap before Chinese New Year due to rising American offer prices to East Asia.
US shippers in the west coast currently offer USD 490 per tonne CFR for HMS or No 1 grade against East Asian users, higher by USD 40 to USD 50 than in December 2011. US composite price, which is the average of market prices in Pittsburg, Chicago and Philadelphia, surged by USD 21.67 to USD 432.5 in the second week of January 2012 from last week. The indicator upturned when US export price to Turkey rose, major shippers aggressively purchase ferrous scrap and domestic steel makers raised their scrap purchasing prices.
Japanese scrap dealer points out Japanese ferrous scrap export price is presently cheaper than US price and South Korean middle class steel makers are expected to increase the purchase volume from Japan.