Flat Ferrous Scrap Price in Tokyo

Ferrous scrap market is calm recently around Tokyo. The dealers’ purchase price is around 37,000 yen per tonne for H2 grade. The local electric furnace steel makers pay 43,000-44,000 yen for H2, which is 2,000-2,500 yen higher than a month ago. The scrap supply is low level. Tokyo Steel Manufacturing increased the purchase price by 500 yen per tonne at Utsunomiya plant on January 19. Other local makers followed the move but the local makers keep the price for a week. A dealer source said the makers should build inventory toward 3-days holiday weekend from February 9. The export price from Tokyo bay is also flat. The export tender price hit record FAS 43,143 yen per tonne for H2 at monthly tender by Kanto Tetsugen on January 15. However, South Korean buyers stop the scrap acceptance in Chinese New Year and Hyundai Steel and some makers reduced the scrap purchase price in late January. Hyundai Steel reduced the offer to Japanese scrap by 500 yen to FOB 43,500 yen per tonne at weekly tender last week. The export dealers around Tokyo reduce the scrap purchase price when they secure the materials for export.