Firm Ferrous Scrap Price in Osaka

Ferrous scrap market price around Osaka is increasing despite of the slower operation season for local electric furnace steel makers. The steels’ purchase price is 69,000-70,000 yen per tonne for H2, which is around 5,250 yen higher from start of June. The price level is expected to increase more under tight supply. The price leader of Tokyo Steel Manufacturing increased the scrap purchase price by total 6,000-7,000 yen per tonne since June start. Other makers around Osaka followed the move. They try to secure the material in competition with integrated steels and offshore buyers. Scrap consumption by electric furnace steels usually decreases in July due to higher electricity cost. However, JFE Steel and other integrated steel makers secure more scrap at higher price than electric furnaces. Electric furnaces also keep the output by increasing billet export to take chance for strong offshore market while they reduce the concrete reinforcing steel bar output for domestic market.