Ferrous Scrap Price Increases to 30,000 yen/T in Tokyo

Japanese ferrous scrap market price is increasing. The purchase price of electric furnace steel makers increased by 2,000-3,000 yen to 29,500-31,000 yen per tonne for H2 grade around Tokyo and to 28,500-30,500 yen around Osaka from last week. Due to the increase in export price, the electric furnaces increased the purchase price despite the low demand.

The price around Tokyo increased to more than 30,000 yen per tonne for H2 grade for the first time in a month. The export price is FOB 30,000 yen, which increased by around 2,000 yen from the recent bottom. Local electric furnaces increased the price 2 or 3 times last week.

Some electric furnaces around Osaka pay around 30,500 yen per tonne for H2 grade. Kishiwada Steel increased the purchase price by 500 yen in Osaka and Yamato Steel, JFE Bars & Shapes and Godo Steel increased the price by 1,000 yen at plants in Himeji on Friday while Tokyo Steel Manufacturing increased the price on the same day. However, the price outlook is still uncertain when the construction steel demand remains low, according to one trading firm source.