Electric Furnaces’ Ferrous Scrap Buy Price Rebound in Tokyo

Ferrous scrap market price rebounded by 3,000 yen per tonne for H2 grade around Tokyo. The price is 39,500-41,500 yen and some price is as high as 43,000 yen. The price is lifted by higher export price and higher consumption after local makers finished seasonal maintenance outage. The price increased for the first time in 2 and half months. Local electric furnace steel makers’ scrap purchase price decreased by around 32,000 yen per tonne in one and half months due to slower export shipping and slower consumption by local makers. The Japanese scrap price is adjusted to international level by end of August. Offshore makers returned to Japanese scrap market and offer higher price than local makers’ purchase price. Kanto Tetsugen’s monthly export tender price, which was FAS 44,300 yen per tonne on Wednesday, was higher than purchase price by local makers. Tokyo Steel Manufacturing and other makers around Tokyo increased the purchase price by 3,000 yen on Thursday. Electric furnace steel makers around Osaka also increased the scrap purchase price for the first time in around 2 months after Tokyo Steel’s hike. The market interests expect higher price under higher export shipping price. The dealers’ shipment decreases after the dealers’ inventory decreased under decreasing market. Tokyo Steel reduced the scrap purchase price by 2,000-3,000 yen per tonne at all plants on Thursday. The Okayama plant reduced the price to 45,000 yen both for land and ocean transportation. Godo Steel’s Osaka and Himeji plants reduced the scrap purchase price by 3,000 yen per tonne. Other makers are expected to follow the move as early as Friday.