High Ferrous Scrap Export Price to Lift Japan Domestic Price

Ferrous scrap price is likely to increase around Tokyo. Market price is 19,000 yen per tonne for H2 grade including freight by dealers while H1 grade is 20,800 yen per tonne and HS grade is 22,500 yen per tonne. The purchase price by local electric furnace steel makers is 25,500-26,500 yen per tonne for H2 grade.

The averaged successful tender price for export for August shipment was FAS 26,753 yen per tonne in the joint bid, which implemented by dealers’ group on Thursday. Dealer source pointed out that ferrous scrap market price could increase when the export price for August is higher than current electric steels’ purchase price.

On the other hand, ferrous scrap price around Osaka is firm at around 17,500 yen per tonne for H2 grade while purchase price by local electric steels is 25,000-26,500 yen per tonne for H2 grade and higher transaction price is likely to increase.

Dealer source said that, the high export price for August shipment was a result of purchase increase not only from South Korea but also from Taiwan. Trade firm source forecasts that the shipment to electric furnaces would decrease due to the high export price.