Ferrous scrap purchase price by electric furnace steel makers surged to 15,000 yen per tonne for H2 around Osaka. They increased the purchase volume of ferrous scrap before 3 consecutive holidays from November 22. Their purchase price is around 15,000-16,000 yen per tonne for H2 and some pay as high as over 16,000 yen.
Ferrous scrap generation stopped from manufacturing plants or scrapped buildings due to dropping price after October. Dealers’ inventory decreased significantly. The supply and demand became tight around Osaka. Ferrous scrap price around Osaka decreased by 37,750 yen per tonne in the first half of November from October, which decreased more than other areas. A dealer source said ferrous scrap price increased as a reaction when electric furnaces decreased the purchase price of ferrous scrap too much. A large dealer source said the demand for ferrous scrap may decrease soon when electric furnaces are increasing their production temporarily during ferrous scrap price stays cheap.Japan Steel Scrap Composite Prices (Sangyo Press)
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