Ferrous Scrap Price in Uptrend around Tokyo and Osaka

Ferrous scrap market price is strong in Japan. Around Tokyo, dealers’ purchasing price is 24,500 yen per tonne for H2 grade, 26,300 yen for H1 grade and 28,000 yen for HS grade. Local electric furnaces’ purchase price surged by 1,500 yen to 29,500-30,500 yen per tonne for H2 this week and some pay as high as 31,000 yen. Dealers’ purchase price increased by 1,500 yen this week to follow local steel makers’ price hike. In addition, ferrous scrap export price keeps uptrend. The market price is expected to maintain upward trend.

Around Osaka, the market price is 20,500 yen for H2. Local electric furnace steel makers pay 28,500-30,000 yen for H2. Tokyo Steel Manufacturing raised the purchase price by 1,500-2,000 yen on Tuesday and other steel makers followed the hike. Ferrous scrap export price is rising mainly for South Korea and Taiwan. A large dealer source said scrap delivery may temporarily slow down since the purchase price was raised despite of low scrap inventory in the market.