Japan Ferrous Scrap Price Keeps Increasing

Japanese ferrous scrap market price continues increasing due to the rise in export price to East Asia. Japanese electric furnace steel makers including Tokyo Steel Manufacturing increased the purchase price from Friday around Tokyo. The higher export price is to increase the domestic price more.

The ferrous scrap purchase price of electric furnaces is 30,500-31,500 yen per tonne for H2 grade and some makers pay 32,000 yen around Tokyo. The electric furnaces increased the price by 1,000 yen from Friday, which increased by around 2,500 yen from the beginning of the month.

The scrap exporters around Tokyo increase the purchase due to the increase in export price. Despite the scrap purchase price increase, the supply to electric furnaces remains low, according to the dealers.

The electric furnaces pay 29,000-30,000 yen per tonne for H2 grade and some makers pay 31,000 yen around Osaka. The dealers increase the purchase for shipping to integrated steel makers and the export. The local market price is expected to increase to the same level as export.