Higher Ferrous Scrap Price in Tokyo

Ferrous scrap purchase price by electric furnace steel makers around Tokyo are reaching 50,000 yen per tonne for H2 grade. Tokyo Steel Manufacturing increased the price to 50,000 yen at Utsunomiya plant on Tuesday, which is the highest level since the start in 1995. Local makers try to secure the materials at higher price under tight supply. Local steel makers pay 49,000-50,000 yen per tonne for H2, which is 5,000 yen higher than previous week. The demand is strong from integrated steel makers and buyers in other areas including Osaka. A dealer source said the buyers compete to get the materials at higher price. Ferrous scrap price also increases in Osaka. Local electric furnace steel makers pay 48,500-50,000 yen per tonne for H2 grade. The makers have trouble to secure smooth scrap arrivals when the dealers try to hold the inventory with expectation for higher price. Some steel makers increased the scrap purchase price in the week after the increase last week. A trading firm source said the scrap supply from other area is limited and the makers have to compete to secure the materials at higher price. Hyundai Steel of South Korea increases the offer price to Japanese scrap again and again. But the price is still lower than domestic market. Japanese scrap market is depending on domestic factors including strong demand and tight supply when offshore buyers are reluctant to buy higher priced Japanese materials.