Firm Ferrous Scrap Price in Tokyo

Ferrous scrap market price is firm at around 54,000 yen per tonne for H2 grade at dealers’ purchase price including freight around Tokyo. Local electric furnace steel makers pay 59,500-62,500 yen for H2. The price could increase more when the shipping FAS price from Tokyo bay also increases and integrated steel makers increase the purchase volume.

Local electric furnace steel makers increased the purchase price by around 7,000 yen per tonne in April. Tokyo Steel Manufacturing increased the price by 2,000 yen to 62,500 yen per tonne for H2 at Utsunomiya plant on April 22 and other makers followed the move.

Export price from Tokyo price also increased when offshore makers try to secure Japanese scrap. Hyundai Steel apparently increased the import price to FOB 63,000 yen for H2 grade at individual negotiation with Japanese dealers.

The local supply is expected to keep tight even after a week long holiday through May 6 though local electric furnaces reduce the purchase volume after output increase during the holiday period usually. The tight supply condition could lift the local market price more for the month.