Japan Ferrous Scrap Price Keeps Strong

Japanese ferrous scrap market price keeps strong when ferrous scrap turn volume is decreasing and the export to East Asia is firm. Ferrous scrap purchase price by electric furnace steel makers is record high 22,500-25,000 yen per tonne for H2 grade around Tokyo and Osaka. A dealer source said the market price may more rise because ferrous scrap generation is expected to continue low and the export maintains high.

Electric furnaces around Tokyo are purchasing H2 at 24,000-25,000 yen per tonne, up by 1,500-2,000 yen. The makers are reducing scrap consumption due to output reduction. However, a dealer source said makers are forced to raise the purchase price due to active ferrous scrap export and reducing ferrous scrap generation.

Most makers are raising the purchase price step by step around Tokyo. Utsunomiya works of Tokyo Steel Manufacturing raised the purchase price by 500 yen per tonne on June 19. Makers’ purchase price increased by 2,000-2,500 yen since the beginning of this month in the region.

Electric furnaces around Osaka are purchasing H2 at 22,500-24,000 yen per tonne. Ferrous scrap export is increasing rapidly. Especially, Chinese importers are aggressively purchasing Japanese ferrous scrap. A large dealer source said the market price around Osaka is lower than the price in other areas but is expected to rise when the purchase price by JFE Steel is higher than local electric furnaces’ purchase price.