Higher Ferrous Scrap Price in Tokyo

Tokyo Steel Manufacturing increased the ferrous scrap purchase price by 500 yen per tonne at all plants effective on Saturday. The purchase price increased to 41,000 yen per tonne for H2 grade. The hike is just after Hyundai Steel of South Korea left the offer to Japanese scrap unchanged at the weekly tender on Thursday. Tokyo scrap market is likely to keep firm when local steel makers try to build scrap inventory preparing for operation during year end and new year holiday. Hyundai Steel offered FOB 36,000 yen per tonne for H2, 39,000 yen for HS and 40,000 yen for new cutting grade to Japanese traders at the weekly tender. Japanese electric furnace steel makers around Tokyo pay around 38,500-40,000 yen per tonne for H2 grade. Ferrous scrap dealers around Tokyo pay 34,000 yen per tonne for H2, 36,300 yen for H1 and 38,000 yen for HS to secure the materials. They increased the purchase price by 1,000 yen last week when local steel makers increase the purchase price level.