Peaking Ferrous Scrap Price in Tokyo

Ferrous scrap market price experiences temporally peak around Tokyo. Some local electric furnace steel makers reduced the scrap purchase price in the week when they can get material enough to the operation under slower export. They pay 69,000-71,500 yen per tonne for H2 grade. Scrap export from Tokyo bay is slow when the offshore buyers are reluctant to purchase high priced Japanese scrap. Local dealers focus on the supply to local electric furnace. The market price peaks out from the record level after consecutive increase since end of 2007 when some local steel makers reduce the price. However, the price is expected to keep the high level when the demand from integrated steel makers and special steel makers keeps strong. Ferrous scrap market price is also peaking around Osaka impacted by mood in Tokyo. Local dealers try to liquidate the inventory when they concern potential lower market under higher supply from other areas along with their liquidity problem. Local electric furnace steel makers around Osaka pay 72,000-73,500 yen per tonne for H2 grade. Yamato Steel in Himeji, Hyogo pays 71,000 yen for H2 with additional 500 yen for shipment from out of Hyogo. Tokyo Steel Manufacturing increased the purchase price at 3 plants other than Utsunomiya on Tuesday. Other makers in Himeji keep the price level when they can get materials enough to the operation with higher volume from Tokyo. Kishiwada Steel reduced the purchase price by 500 yen per tonne for steel turning scrap on Thursday. A trading firm source expects the makers could reduce the price more depending on the supply.