Flat Ferrous Scrap Price in Tokyo

Ferrous scrap market price is flat at 29,500 yen per tonne for H2, 31,800 yen for H1 and 33,500 yen for HS at dealers’ purchase price including freight around Tokyo. The market price is expected to keep the level with higher demand from local electric furnace steel makers and from Osaka for output increase in coming a-week-long holiday despite of weak export price. Local electric furnace steel makers pay 35,500-36,500 yen for H2 and some pay as high as 37,500 yen. The makers’ purchase price is the level of FAS export price from Tokyo bay after the makers increased the purchase price by around 7,000 yen per tonne since early February. Tokyo Steel Manufacturing increased the purchase price by 1,000 yen to 37,500 yen per tonne for H2 at Utsunomiya plant on Friday. Other local makers keep the purchase price when export price peaked. The export price is expected to decrease under lower offshore market. Hyundai Steel reduced the offer to Japanese scrap by 500 yen to 37,500 yen per tonne for H2 grade for May shipment at tender last week. The market price seems peaking. However, local electric furnace steel makers try to build up scrap inventory to increase output in coming holiday and the scrap shipping to Osaka increases.