Firm Ferrous Scrap Price in Tokyo

Ferrous scrap market price is firm at around 55,500 yen per tonne for H2 at dealers’ purchase price including freight around Tokyo. Local electric furnace makers purchases at 62,500-63,500 yen per tonnes for H2 and some pays as high as 64,500 yen. Ferrous scrap shipping didn’t change after long holidays in the first half of May despite of some makers’ shutdown. Dealer source said the supply and demand keeps tight for high grade scrap such as HS when integrated steel makers and special steel makers are aggressively purchasing. Consequently, local electric furnace makers raised the purchase price of ferrous scrap. Utsunomiya works of Tokyo Steel Manufacturing increased the price by 1,000 yen per tonne to 64,500 yen for H2 on Tuesday. Other electric furnace makers raised the price, too.Export price is increasing when crude steel is expanding on a global basis and overseas steel makers are increasing the purchase volume of Japanese ferrous scrap.Japanese scrap export price hit record FAS 64,850 yen per tonne for H2 grade scrap from Tokyo bay at monthly tender for June shipment by Kanto Tetsugen on May 13, which was 6,850 yen higher than previous tender. The price level is around 1,500 yen higher than local makers’ purchase price.American ferrous scrap export price pierced US$ 700 per tonne to East Asia. Dealer source said higher international ferrous scrap price may make impact to Japanese ferrous scrap market price.