Higher Export Price to Lift Local Ferrous Scrap Price in Osaka, Tokyo

Japanese ferrous scrap export price hit FAS 30,810 yen per tonne for H2 grade at joint tender held by scrap dealers’ group around Osaka on Wednesday. The price was in line with joint tender results by another dealers’ group around Osaka on February 3. The price was higher than local electric furnace makers’ purchase price. One dealer source sees the higher export price would lift local market price.

Local electric furnaces’ scrap purchase price is 28,500-29,000 yen per tonne for H2 grade around Osaka while some makers pay around 29,500 yen. The dealer source sees the scrap supply would get tight mainly for H2 grade when the export prices at tender by 2 dealers’ groups around Osaka was higher than the local electric furnaces’ purchase price. Local dealers’ scrap purchase price is around 19,500 yen for H2 grade.

Ferrous scrap market price is flat at around 21,000 yen per tonne for H2 grade, 22,800 yen for H1 grade and 24,500 yen for HS grade at the dealers’ purchase price including freight around Tokyo. Local electric furnace steel makers pay 29,000-30,000 yen for H2 grade while some makers pay 30,500 yen.

Some scrap exporters increase scrap purchase price under steady export for South Korea around Tokyo bay. The market price could increase depending on result of tender held by Kanto Tetsugen on Thursday.