Japan Ferrous Scrap Price Hits 60,000 yen/t

Japanese ferrous scrap price level reaches 60,000 yen per tonne under tight supply. Electric furnace steel makers’ purchase price increased by 1,500 yen to 59,000-60,000 yen for H2 grade around Osaka. The scrap price is expected to keep high level when integrated steel makers increase the purchase volume along with firm offshore demand. Electric furnace steel makers increased the purchase price by 1,000-2,000 yen per tonne on Friday to build inventory preparing for higher operation during major holiday from end April. Domestic integrated steel makers increase the scrap purchase volume for additional steel source and lower carbon dioxide emission. On the other hand, the dealers try to hold the scrap inventory around Osaka with expectation for higher price. Electric furnace steel makers’ purchase price is getting to 60,000 yen per tonne level for H2 grade around Tokyo. Local makers increased the price by 1,500-2,000 yen to 56,000-58,000 yen last week under tight supply. Tokyo Steel Manufacturing increased the price by 1,500 yen to 58,000 yen for H2 and to 60,500 yen for new cutting scrap on Friday. They try to secure the materials at higher price when integrated steel makers increase the purchase volume and the local dealers experience slower generation from the market. The export price from Tokyo bay hit another record FAS 58,000 yen per tonne for H2 at monthly export tender held by Kanto Tetsugen on Wednesday, which increased by 5,750 yen from previous tender. The strong demand from offshore makers also lifted the price level for Japanese scrap.