Steady Ferrous Scrap Price in Tokyo, Osaka

Ferrous scrap market price is steady at around 23,500 yen per tonne for H2 grade, around 25,300 yen for H1 grade and around 27,000 yen for HS grade at the dealers’ purchase price including freight around Tokyo. The market price would increase from around 21,500 yen for H2 grade around Osaka,

Local electric furnace steel makers pay 30,000-31,000 yen for H2 grade and some makers pay 31,500 yen around Tokyo. The makers around Osaka pay around 29,500-31,000 yen for H2 grade and higher price is around 32,000 yen.

Around Tokyo, local dealers are increasing the scrap purchase price when local electric furnaces increased the purchase price late last week. The scrap demand is firm from local steel makers. However, one dealer source sees the supply remains low despite of higher offer by the dealers.

The scrap market price is increasing around Osaka in December. Local electric furnaces increased the purchase price to secure the scrap. However, one dealer source sees the makers cannot secure their planned volume. The source sees the dealers’ supply cannot meet the demand when the dealers reduced the scrap inventory during market price decrease period since October.

Another dealer source sees the market sources expect higher market price when the demand could increase before longer weekends in next week and in early January.