Strong Ferrous Scrap Price in Tokyo, Osaka

Ferrous scrap market price increased around Tokyo. The price is around 29,500 yen per tonne for H2 grade, around 31,300 yen for H1 grade and around 33,000 yen for HS grade at the dealers’ purchase price including freight. Local electric furnace steel makers pay 35,000-36,000 yen for H2 grade and higher price is 37,000 yen.

Most of local electric furnaces increased ferrous scrap purchase price by 500 yen or more per tonne on Wednesday. One dealer source sees the electric furnaces increase the scrap purchase to prepare for the operation in two three-day weekends in late September due to recovery of steel output while the scrap supply remains low.

Ferrous scrap market price would increase from around 25,500 yen per tonne for H2 grade at the dealers’ purchase price around Osaka. Local electric furnace steel makers pay 34,000-35,000 yen per tonne for H2 grade and higher price is around 35,500 yen. Higher ferrous scrap export price for East Asia lifted the domestic market price.

A dealer source sees scrap supply could get short temporarily around Osaka. The makers are expected to increase the scrap consumption during the longer weekends while some of the makers stop the operation in this week. Local exporters ship scrap for joint export order next week.