Ferrous Scrap Price Rebounds around Tokyo

Ferrous scrap market price rebounded after 1.5 months around Tokyo. Some electric furnace steel makers such as Tokyo Steel Manufacturing raised their purchasing price by 500 yen per tonne when Japanese ferrous scrap export price increased to reflect the recovery of overseas market price. The purchasing price is 33,000-34,000 yen per tonne for H2 grade and some pay as high as at 34,500 yen.The market price maintained weak around Tokyo since late April with less orders from overseas. Japanese scrap dealers increased their shipment to domestic steel makers due to lower allocation of export ships from Tokyo bay and their anticipation for market price fall. Local electric furnace steel makers had procured ferrous scrap actively and easily under the conditions. Their purchasing prices decreased by 2,500-3,000 yen per tonne from late April.Overseas market price rebounded at the end of May. The market price in South Korea and newly contracted export price from USA to East Asia increased. Following the offshore trend, newly contracted export price from Japan to East Asia rebounded to around 35,500-36,000 yen per tonne, which exceeded local steel makers’ purchasing prices around Tokyo.Tokyo Steel raised its purchasing price by 500-1,000 yen per tonne in the all works on Wednesday. Some of other local steel makers increased the price, too.