Strong Ferrous Scrap Price in Tokyo and Osaka

Ferrous scrap price is increasing around Tokyo. Market price is around 20,000 yen per tonne for H2 grade, 21,800 yen for H1 grade and 23,500 yen for HS grade at the dealers’ purchase including freight. Local electric arc furnace steel makers’ purchase increased by 2,000 yen to 26,000-27,000 yen for H2 grade compared with last week.

The dealers increase the purchase price when local makers have increased the purchase since the end of last week. However, ferrous scrap generation remains low. One dealer source said that the dealers cannot increase the purchase volume when they raise purchase price. The price would increase more.

Ferrous scrap price would increase around Osaka due to the increase in purchase price by local electric furnace steel makers and increasing export price. The market price is around 18,000 yen per tonne for H2 grade at the dealers’ purchase including freight while local electric furnace steels pay 24,000-25,000 yen. Some makers pay 27,000-27,500 yen for H2 grade. The spread in prices widens.