Japan Fe Scrap Price Continues to Surge by 1,500 Yen/t

Japanese ferrous scrap market price increased by 1,000-1,500 yen per tonne at the end of last week. Domestic steel makers purchase H2 at around 35,000-36,000 yen per tonne and some pay as high as 37,000 yen. The supply and demand balance is tight due to active ferrous scrap export and scrap procurement by Japanese integrated steel makers.

Japanese ferrous scrap export price is around FOB 35,200 yen for H2 grade. The new export negotiations restarted mainly between Japanese exporters and South Korean importers after the temporary slowdown since February. Ferrous scrap export price is rising at Tokyo Bay. Under the condition, Japanese electric furnace steel makers decided to raise their purchasing price.

Around Tokyo, local electric furnaces purchase H2 at 34,500-35,500 yen per tonne. The makers raised the price by 1,500 yen on Friday. The supply and demand balance maintains tight.

The price hike by Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, is pushing up the market price around Osaka, too. Sanyo Special Steel raised the purchase price by 2,500 yen. Yamato Steel, Himeji works of JFE Bards & Shapes and Himeji works of Godo Steel increased the purchase price by 1,500 yen. Yamato Steel’s purchase price reached 36,500 yen.