Ferrous Scrap Price Rises in Tokyo

Ferrous scrap purchase price by electric furnace steel makers around Tokyo increased by 1,000-2,000 yen to 10,000-12,000 yen per tonne on Thursday. The price rebounded due to low level local supply and higher export price from Tokyo bay.

Local yard dealers have trouble to secure the materials after the plunge in October. The dealers see the lower price impacts on the scrap arrivals to electric furnace steel makers.

Japanese scrap export resumed after slump when offshore buyers are increasing the purchase of low priced Japanese scrap. The export price is 3,000-4,000 yen per tonne higher than purchase price by local electric furnace steel makers.

Under the condition, several makers increased the scrap purchase price on Wednesday. Tokyo Steel Manufacturing’s Utsunomiya plant followed the move to increase the purchase price by 1,000 yen on Thursday. Other makers followed the move.

Japan Iron and Steel Recycling Institute reported the scrap market price kept decreasing in October dropping by 35,000 yen per tonne in the month around Tokyo, Nagoya and Osaka. The institute analyzed the unprecedented plunge was due to lower international market under worldwide financial crisis and slower industrial activity along with slower Japanese scrap export. The institute sees the scrap buyers’ appetite is still low level under slow building activity and output reduction by domestic steel makers.