Japan Ferrous Scrap Price Keeps Uptrend for 6 Weeks

Japan Steel Scrap Composite Price, which is the averaged purchase price by the dealers in Tokyo, Osaka and Nagoya surveyed by Japan Metal Bulletin, kept uptrend for 6 consecutive weeks. The composite price upped by 1,700 yen 25,300 yen per tonne for H2 grade and by 1,600 yen to 29,600 yen per tonne for new cutting press in the second week of March. Scrap dealers increased the purchase price when electric furnace steel makers are raising the purchase price for ferrous scrap.

In Tokyo, ferrous scrap market price is around 29,000 yen per tonne for H2, higher by 6,000-7,000 yen than in February. Local electric furnaces pay 34,500-35,500 yen per tonne for H2. Scrap supply is tight. Local makers and dealers raised the purchase price to secure the volume. The market price rose by 2,000-3,000 yen last week.

In Nagoya, the market price is around 20,800 yen for H2. Local electric furnaces pay 35,000 yen for new cutting and 32,000 yen for H2. Ferrous scrap demand is increasing from special steel makers. The supply keeps tight especially for high grade scrap. Dealers expect the market price continues to rise thanks to the strong demand in Asia and low shipping volume.

In Osaka, ferrous scrap market price is strong at around 26,000 yen per tonne for H2. Local electric furnaces purchase H2 at 34,000-35,000 yen. A large dealer source said makers’ purchase price would rise more to secure the volume. Some local makers already raised the purchase price on Friday.