Higher Japan Ferrous Scrap Price

Japanese ferrous scrap price increased additionally. Local electric furnace steel makers pay 36,500-38,000 yen per tonne for H2 grade scrap, which is 500-1,000 yen higher than last week level. Japanese scrap industry expects the price increases more when the export market price keeps increasing for East Asia.

Electric furnace steel makers around Tokyo pay 36,500-38,000 yen per tonne for H2 grade scrap, which is 500 yen higher than last week level. Tokyo Steel Manufacturing’s plant and other makers increased the purchase price on Saturday to compete with higher export price.

Successful bid was averaged FAS 38,601 yen per tonne for H2 scrap at monthly export tender held by Kanto Tetsugen on Friday, which was around 5,400 yen higher than previous tender. Japanese scrap dealers expect the domestic price should increase under tight supply and higher export price.

Scrap price also increases in Osaka area. The electric furnace steel makers pay 37,000-38,000 yen per tonne for H2 scrap. Tokyo Steel’s plant increased the purchase price on Saturday and Kishiwada Steel, Godo Steel’s Osaka plant, Yamato Steel and JFE Bars & Shapes’ Himeji plant followed the move.

Scrap supply is getting tight, especially for heavy scrap around Osaka since December. Some makers purchase scrap from Tokyo and Nagoya areas. Local scrap suppliers try to increase the selling price under higher export price.

Scrap dealers at coastal area around Osaka increase purchase of high grade scrap including new cutting scrap when integrated steel makers also increase the scrap purchase volume. The supply condition is expected to lift domestic market price.