Japan Ferrous Scrap Price Rises for 2 Consecutive Weeks

Japanese ferrous scrap market price rose for 2 consecutive weeks. A dealer source said ferrous scrap turn volume is 30-40% lower in June than a year earlier while ferrous scrap export price to East Asia stays high. Under the situation, electric furnace steel makers around Tokyo and Osaka raised their scrap purchasing price by 500-1,000 yen per tonne this week. Domestic demand is recovering slowly when integrated steel makers restarted ferrous scrap procurement and automobile output is gradually increasing.

Electric furnaces around Tokyo purchase H2 at 22,500-23,500 yen per tonne this week, higher by 500-1,000 yen from last week. Some pay as high as 24,000 yen. A dealer source said some ferrous scrap is delivered to quay warehouses due to high export price despite of low scrap generation in the market.

Electric furnaces raised the purchase price to secure enough ferrous scrap.. A dealer source indicated the market price could maintain strong as long as the export price is higher than domestic market price.

Electric furnaces around Osaka purchase H2 at 22,000-23,000 yen per tonne this week, up by 1,000 yen from last week. A large dealer source said local electric furnaces’ scrap procurement is effected by JFE Steel’s restart of scrap procurement and scrap dealers’ joint export scheduled on 17 June.