Ferrous scrap purchase price by electric furnace steel makers around Tokyo increased by 1,000 yen per tonne on Tuesday. The purchase price is around 10,000-13,000 yen. The electric furnaces increased the price when the dealers ship scrap for export as well under tight supply.
The dealers secure scrap to prepare for export order from Tokyo bay while they try to build inventory after the liquidation during price down. The dealers prefer to ship for coastal yards when the shipping FAS price from Tokyo bay is higher than purchase price by steel makers. Tokyo Steel Manufacturing hiked purchase price by 1,000 yen per tonne at Utsunomiya plant from Tuesday arrival. Other electric furnaces follow the price hike with same range. Around Osaka, the scrap purchase price by electric furnaces increased by 1,000-2,000 yen per tonne from the end of last week by Tuesday under tight supply. One trade firm source said local scrap consumption could decrease when local steel makers expand the output reduction. But the scrap price around Osaka increased 2 weeks in a row. The market price seems to increase with concern on supply due to slower building scrap and build activity.M | T | W | T | F | S | S |
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Japan Steel Scrap Composite Prices (Sangyo Press)
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