Japan Ferrous Scrap Price Hits 40,000 yen

Japanese ferrous scrap market price continues increasing in Tokyo and Osaka. Japanese largest electric furnace steel maker, Tokyo Steel Manufacturing increased ferrous scrap purchase price by 2,000 yen per tonne at all plants on Friday. The price for H2 grade is more than 40,000 yen per tonne at Okayama plant, Kyushu Plant and Tahara plant. Electric furnaces around Osaka followed the price hike by Tokyo Steel and some makers’ purchase price increased to more than 40,000 yen for the first time in a month. A trading firm source sees the electric furnaces would increase steel selling price due to higher scrap price under export price increase for South Korea.

Local electric furnaces’ ferrous scrap purchase price is 37,500-38,500 yen per tonne for H2 grade around Tokyo, which increased by 3,000-4,000 yen from last week. Some makers pay around 39,000 yen. The price recovered the same level as recent peak in the end of February. The electric furnaces are increasing the scrap purchase price under higher export price and tight supply.

Ferrous scrap export price is around FOB 37,500 yen per tonne for H2 grade for South Korea, which is 1,500 yen higher than last week. South Korean electric furnaces are increasing ferrous scrap import from Japan. However, Japanese trading firm sources see Japanese scrap export price is losing lower price advantage than US scrap export price.

Local electric furnaces’ ferrous scrap purchase price is 39,000-40,000 yen per tonne for H2 grade and some makers pay 41,000 yen around Osaka. Godo Steel, JFE Bars & Shapes and Yamato Steel increased the scrap purchase price by 2,000 yen at plants in Himeji on Friday when Tokyo Steel increased the price on the same day. In Osaka, Kishiwada Steel increased the price by 2,500 yen for steel turning scrap and by 2,000 yen for other grades on Friday. Godo Steel also increased the price by 2,000 yen at its plant in Osaka on Friday. Some makers are increasing the spot purchase and the makers increase the actual purchase price.

Local dealers around Osaka are increasing ferrous scrap purchase mainly for high grade scrap to ship for integrated steel makers and other areas. The price is significantly increasing for new cutting scrap due to lower scrap generation. However, a dealer source sees the dealers would accelerate the scrap shipment even at spot deals to avoid price down risk under demand uncertainty.