Japan Steel Scrap Composite Price Rises

Japan Steel Scrap Composite Price increased to 22,300 yen per tonne for H2 in fourth week of August, which is 2,000 yen higher than previous week. The price index, which is averaged scrap dealers’ purchase price in Tokyo, Osaka and Nagoya, increased by 2,400 yen to 26,000 yen per tonne for pressed new cutting scrap. The price is 4,400 yen higher for H2 and 4,700 yen higher for new cutting grade from the beginning of the month.

The price increased under higher scrap export price, low level scrap generation and higher demand from electric furnace steel makers. The lower supply under low level industrial activity impacts on the procurement by scrap dealers. The domestic supply is also limited due to firm scrap export to Asian countries.

Electric furnace steel makers in major metropolitan areas in Japan increased the scrap purchase price to 29,500-32,000 yen per tonne for H2 grade. The makers are in summer time maintenance outage but they improve the operation level from the bottom in earlier the year. The dealers also increase the purchase price to secure the material under tight supply.