Japan Steels Raise Scrap Buy Price by 1,000-1,500 yen/t

Japanese ferrous scrap price increased by 1,000-1,500 yen per tonne last week. The price reached 35,000-37,000 yen for H2 grade at electric furnace steel makers’ purchase price. The price was lifted under tight supply due to higher purchase volume by integrated steel makers and shipping for existing export orders.

The export price is around FOB 35,200 yen per tonne for H2 grade scrap. Offshore buyers mainly in South Korea increase the scrap purchase from Japan recently while Japanese scrap export transaction was slow since February. Japanese FAS shipping price also increases and to compete with the shipping price, domestic electric furnace steel makers increased the purchase price.

Electric furnace steel makers around Tokyo pay 34,500-35,500 yen per tonne for H2 grade scrap after Tokyo Steel Manufacturing’s Utsunomiya plant increased the purchase price by 1,500 yen on Friday. The makers have no choice but to increase the price when the supply is still tight around Tokyo.

Tokyo Steel’s higher purchase price impacts on scrap market around Osaka. Electric furnace steel makers increased the purchase price on Friday around Himeji, Hyogo area. The price was increased by 2,500 yen per tonne by Sanyo Special Steel and by 1,500 yen by Yamato Steel, JFE Bars & Shapes’ Himeji plant and Godo Steel’s Himeji plant. Price leading Yamato Steel’s purchase price reached 36,500 yen for H2 grade with additional 500 yen for delivery from other than Hyogo.

Electric furnace steel makers in Osaka keep the purchase price so far but the makers are expected to increase the purchase price sooner or later to secure scrap when the scrap price is higher for integrated steel makers.