Japan Ferrous Scrap Composite Price Rises by 2,100 Yen/t for H2

Japanese ferrous scrap composite price surged by 2,100 yen (US$ 22.75) to 17,900 yen (US$ 193.93) per tonne for H2 grade and by 2,200 yen (US$ 23.84) to 21,800 yen (US$ 236.19) per tonne for new cutting scrap on January 15th from a week ago, according to Japan Metal Bulletin’s survey data. Domestic electric furnace steel makers raised their purchase prices following upsurge of exporting scrap price to East Asia.

Local electric furnaces around Tokyo pay 27,000-28,000 yen per tonne for H2. Scrap dealers started to raise their purchasing price to follow the makers’ price hike. However, ferrous scrap supply maintains low. A dealer source said the purchase volume doesn’t increase if they raise the purchase price.

Around Nagoya, local electric furnaces pay 29,500-30,000 yen per tonne for new cutting scrap and 26,000-27,000 yen for H2. The makers’ purchase price continued to surge when scrap dealers are raising the purchase price around quays to follow high export price to East Asia.

On the other hand, demand for ferrous scrap keeps inactive from local steel makers in Nagoya. Electric furnace steel makers still continue output reductions. Additionally a major special steel maker is suspending its furnace under the scheduled refinement. A large dealer source said ferrous scrap market price may drop in February if domestic demand for ferrous scrap keeps low.

Around Osaka, local steel makers’ purchase price is 25,000-27,500 yen for H2, lower than the export price. A local dealer source said dealers’ purchase price is even higher than the makers’ price. Meanwhile, another dealer showed a negative stance to raise the purchase price too highly.