Japan Ferrous Scrap Price Continues to Rise

Japan ferrous scrap price is increasing by 1,000-2,000 yen to 36,000-38,000 yen for H2 grade when ferrous scrap export price is rising and trade volume recovered to west Japan from east Japan. Scrap purchase price by local electric furnace steel makers increased by 2,000-2,500 yen to 35,500-36,500 yen around Tokyo and some pay as high around 37,000 yen. Local makers increased a couple of times within one week.

The export price increased by 2,000-3,000 yen to FOB 36,000 yen per tonne for H2 from mid-March. The export contracted with mainly South Korean Importers, but overseas demand doesn’t increase and Japanese scrap price is only lower than American scrap price, according to dealer source.

The scrap price is increasing around Osaka. Local electric furnace steel makers buy scrap at 37,500-38,500 yen and some pay as high as 39,000 yen. The price increased by 1,000-2,000 yen from last week. Kishiwada Steel and Osaka works of Godo Steel increased purchase price by 1,000 yen.

Ferrous scrap demand is firm. Local makers maintain spot purchase when the consumption of ferrous scrap is much in long holidays in May, according to dealer source.