Japan Ferrous Scrap Price Gains Strong in February

Japanese ferrous scrap market price turns upward when the export price is increasing under tight supply. The averaged electric furnace steel makers’ purchase price is 37,000-39,000 yen per tonne for H2 grade scrap in Tokyo and Osaka while some makers around Osaka pay 40,000 yen.

The electric furnaces’ purchase price is flat at 36,500-37,500 yen per tonne for H2 grade around Tokyo while some makers pay around 38,000 yen. The most of local steel makers left the purchase price unchanged since late January.

However, the export price slightly increased to FOB 38,500 yen per tonne for H2 grade from the bottom in late January. Some dealers expect the higher export price would lift the domestic market price.

Scrap market price around Osaka increased again in February. The local electric furnaces’ purchase price is 38,500-40,000 yen per tonne for H2 grade. The market price keeps increasing when some makers increased the price last week.

The domestic market price peaked in mid January when the export transaction slowed for East Asia. However, scrap supply is decreasing to local electric furnaces around Osaka since the end of January and the supply gets tight again, a trader source said.

The Japanese sources concern the price could be impacted negatively by offshore market when US scrap export price decreased to Turkey. Other scrap dealers expect electric furnaces around Osaka would try to secure the scrap at spot base before three-day holiday through next Sunday.