Japan Ferrous Scrap Market Price Rebounds

Japanese ferrous scrap market price increased for the first time in about one and half months due to resumed export transaction for East Asia. Japanese electric furnace steel makers increased the scrap purchase price by 1,000 yen per tonne late last week. Local electric furnaces’ purchase price for H2 grade is 34,500-35,500 yen in Tokyo, around 36,000 yen in Nagoya and 36,500-38,000 yen in Osaka.

Local electric furnaces’ ferrous scrap purchase price is 34,500-35,500 yen per tonne for H2 grade around Tokyo, which is 1,000 yen higher than last week, and some makers pay around 36,000 yen. The electric furnaces’ price increased for the first time in about one and half months when the export price is increasing for East Asia. The export price has been increasing to FOB 35,000-36,000 yen for H2 grade since late March. A dealer source sees higher scrap shipment to other areas also impacts local market price.

Electric furnaces pay around 36,000 yen per tonne for H2 grade around Nagoya. Some local electric furnaces increased the purchase price when Tokyo Steel Manufacturing increased the price on Friday. The scrap supply for the electric furnaces is limited due to low scrap inventory held by the dealers when the scrap generation stays low from manufacturers including automobile makers. Nissan Motor has resumed the automobile output. However, new cutting and turning scrap supply remains tight due to lower automobile output. Local scrap dealer sources expect local electric furnaces would increase the scrap purchase price more under limited scrap supply.

Electric furnaces around Osaka are following ferrous scrap purchase price increase of Tokyo Steel. The electric furnaces pay 36,500-38,000 yen per tonne for H2 grade. Some electric furnaces increased the scrap purchase price only for some grades including new cutting and turning scrap. However, the dealer sources said the electric furnaces offer higher spot purchase price to secure the material for weekend operation and local scrap exporters try to increase new cutting scrap purchase.