Ferrous Scrap Price Exceeds 20,000 y/t in Tokyo and Osaka

Ferrous scrap purchase price of electric furnace makers increased for 3 consecutive weeks and increased to over 20,000 yen per tonne for H2 grade around Tokyo and Osaka. However, the price is lower than the export price to East Asia of FOB 22,000-23,000 yen. A dealer source said there is possible the purchase price more rises. A large dealer source said the supply and demand of ferrous scrap keeps tight if the makers continue the output with a present level when contracted export remains until next month.

The purchase price increased to 20,000-21,000 yen per tonne by 1,000 yen on Monday from last week around Tokyo and some pay as high as 22,000 yen.

The amount of ferrous scrap purchase volume by the makers is expected to be higher than last month. Each maker is raising the purchase price for securement of ferrous scrap when dealers are aggressively exporting ferrous scrap.

The purchase price of electric makers around Osaka increased to 19,000-21,000 yen for H2 and exceeded 20,000 yen for the first time in 2 months. Yamato Steel, JFE Bards and Shapes and Tokyo Steel Manufacturing raised the purchase price by 500 yen per tonne for H2. Yamato Steel’s price increased to 19,000 yen.