Ferrous Scrap Price Rises in Tokyo

Electric furnace steel makers around Tokyo increased the ferrous scrap purchase price by 1,000 yen per tonne late last week. They pay 37,000-38,000 yen per tonne for H2 grade and some makers pay as high as 39,500 yen when the export price increases for Asian market. The local price could increase more when local makers increase the output after maintenance outage. Tokyo Steel Manufacturing increased the scrap purchase price by 1,000 yen to 39,500 yen per tonne for H2, to 42,000 yen for new cutting without press and 33,000 yen for steel turning scrap at Utsunomiya plant on Friday. Some other local makers followed the move to increase the purchase price by 1,000 yen per tonne. Their purchase price increased by total 1,000-2,000 yen in the month. The scrap export price from Tokyo bay increased by 1,000 yen to FOB 38,500 yen per tonne for H2 grade compared with August level. The price is competing with purchase price by local steel makers. The makers increase the scrap purchase volume to increase the output after the outage. The higher consumption could tighten the local supply.