Tokyo Steel Increases Ferrous Scrap Purchase Price

Tokyo Steel Manufacturing increased ferrous scrap purchase price on April 20. The firm increased the price by 1,000 yen per tonne for Okayama plant, Kyushu plant, Takamatsu plant and Tahara plant. The firm increased the price by 2,000 yen for Utsunomiya plant. The revised purchase price for H2 grade is 42,000 yen per tonne for Okayama plant, Kyushu plant and Tahara plant. The price is 40,000 yen for Takamatsu plant and 41,000 yen for Utsunomiya plant.

Ferrous scrap market price would increase around Tokyo. The dealers’ purchase price is 32,000 yen per tonne for H2 grade, 33,800 yen for H1 grade and 35,500 yen for HS grade including freight. Local electric furnace steel makers’ purchase price is 37,500 yen-38,500 yen for H2 grade, which is 2,000 yen higher than the previous week. Some makers pay 39,000-39,500 yen.

Local dealers’ purchase price continues increasing since early this month when local electric furnaces increased the price. However, the scrap supply to the dealers remains tight. Dealer sources analyze the supply has not significantly increased if they raised the purchase price.

Ferrous scrap market price would increase from 31,000 yen per tonne for H2 grade at the dealers’ purchase including freight. Local electric furnaces’ purchase price is 39,000-40,000 yen for H2 grade. Some makers pay around 41,000 yen.

Trade firm source sees ferrous scrap market price increase could slow when Tokyo Steel left the steel selling price unchanged for dealers for May order. Dealer source expect large lot transaction would increase mainly for spot deal this week.