Ferrous Scrap Price Turns Upward in Japan

Ferrous scrap market price turned upward in Tokyo and Osaka. The price and shipment are stimulated by active export bound for East Asian countries. In Tokyo, some electric furnaces’ purchasing price recovered 20,000 yen per tonne for the first time since October 2008. Electric furnace steel makers in Osaka also raised their purchasing prices for the first time in 2 months. A scrap dealer source said the supply and demand balance is tightening thanks to the decreasing generation and the increasing export, that is, the market mood is strong in a short term.

In Tokyo, electric furnace steel makers raised their scrap purchasing price by about 2,000 yen per tonne on 15 January. The latest price is averagely 19,000-20,000 yen per tonne for H2 and some pay as high as 21,000 yen. Ferrous scrap export price was average FAS 23,312 yen per tonne for H2 at a tender held by Kanto Tetsugen on 14 January. The bid price was higher than local electric furnaces’ by 3,000-4,000 yen. Domestic market price is expected to surge to follow higher export price.

In Osaka, Godo Steel’s Osaka works raised its purchasing price by 2,000 yen effective for arrivals on 15 January. Other electric furnaces raised their purchasing prices, too. The current price is averagely 15,000-16,500 yen per tonne for H2 and some pay as high as 17,500 yen. Local electric furnaces’ purchasing price rebounded for the first time since November 2008.

In Himeji, Yamato Steel and Godo Steel’s Himeji works raised their purchasing prices by 2,000 yen on 15 January. Yamato Steel’s H2 purchasing price rose to 19,500 yen per tonne.