Mixed Ferrous Scrap Trend in Tokyo, Osaka

Ferrous scrap market price increased to 33,500-34,000 yen per tonne for H2 grade at local electric furnace steel makers’ purchase price around Osaka. Tokyo Steel Manufacturing increased the purchase price by 500 yen at all plants on Wednesday and the makers around Osaka followed the move. The market price would increase more when domestic makers increase the inventory to prepare for the operation in long holidays from late April under higher scrap demand for the export for South Korea.

Kishiwada Steel and some makers around Osaka increased the purchase price on Tuesday. Other makers including Osaka Steel and Godo Steel increased the price on Wednesday. Most of local electric furnaces around Tokyo left the scrap purchase price unchanged at 33,000-34,000 yen per tonne on the day despite the price increase by makers around Osaka.

Local electric furnaces’ purchase price is unchanged around Tokyo when the makers secure requirement under seasonal higher scrap supply after the purchase price hike. One trading firm source sees the price would increase when the export shipping is high at around 50,000 tonnes per week from Tokyo bay.