Japan Ferrous Scrap Price to Eye 70,000 yen/t Level

Japanese ferrous scrap market increases toward 70,000 yen per tonne level for H2 grade around Tokyo. The demand is strong when integrated steel makers increase the consumption to reduce carbon dioxide emission along with firm demand from South Korea. Japanese electric furnace steel makers try to find the price trend when they try to pass the higher cost on the selling price.Local electric furnace steel makers increased the scrap purchase price by 1,000 yen per tonne last week. The makers pay 63,500-64,500 yen for H2 grade and some makers pay as high as 65,500 yen. While they increased the price by 2,000-3,000 yen during the month, the makers have trouble to secure the materials due to strong demand from integrated steel makers and dealers to ship for other areas and export. The scrap export price from Tokyo bay keeps rising when worldwide raw steel output growth increases the demand for steel sources including Japanese scrap. Local scrap dealers expect local steel makers should increase the purchase price more when recent scrap export price is more than purchase price by local makers.Ferrous scrap price is also rising around Osaka. Electric furnace steel makers pay 63,500-65,000 yen per tonne for H2 grade, which is 26,750 yen higher than level in a year earlier. Local market could increase more with rising cost for materials from Tokyo.