Japan Steel Scrap Composite Price Rises Further

Japan Steel Scrap Composite Price, which is averaged purchase price by scrap dealers in Tokyo, Osaka and Nagoya, increased for 3 weeks in a row through last week. The price increased by 1,000 yen to 21,400 yen per tonne for H2 grade and by 900 yen to 25,000 yen for pressed new cutting scrap in third week of February from the previous week. Japanese electric furnace steel makers raised the purchase price to secure the material while scrap generation remains low.

The dealers’ purchase price is around 24,000 yen per tonne for H2 grade around Tokyo, which increased by 2,000-3,000 yen from the beginning of February. The dealers’ purchase price is around 22,000 yen per tonne for H2 grade around Osaka. Electric furnaces steel makers pay 29,500-31,000 yen for H2 grade scrap around Osaka.

Some dealers start to increase the purchase price before electric furnaces steel makers raise the price when the price is estimated to increase more and scrap generation remains low, according to dealer sources.