Higher Ferrous Scrap Price in Osaka

Ferrous scrap market price is accelerated to increase in the month around Osaka. Tokyo Steel Manufacturing increased the purchase price to 50,000 yen per tonne for H2 at Okayama plant through 3 times increases after February 13. Other makers followed the move to secure the materials. Local electric furnace steel makers’ scrap purchase price is 47,000-48,000 yen per tonne for H2 grade around Osaka, which is around 4,000 yen higher than the beginning of the month. Hyundai Steel of South Korea purchased US scrap at 80,000 tonnes on February 14 and 40,000 tonnes on February 18 at CFR US$ 478 per tonne for No.1 heavy melting scrap, which is around US$ 44 higher than the beginning of the year. The price is still relative lower than Japanese scrap and Japanese industry expects offshore buyers shift from Japanese scrap to other sources. Japanese scrap supply is getting tighter especially for high grade scrap when integrated steel makers purchase more for output increase and carbon dioxide reduction. Coming scrap shipping also reduces the local supply when scrap is exported from Osaka area with 5,000 tonnes each cargo in the week and March.