Higher Ferrous Scrap Price in Tokyo

Electric furnace steel makers increased the ferrous scrap purchase price by around 1,000 yen per tonne in the week under tight supply. The price level is 65,500-66,500 yen per tonne for H2 grade and some makers pay as high as 67,500 yen. The price is likely to keep firm with strong demand at home and abroad. Tokyo Steel Manufacturing’ Utsunomiya plant and some other makers increased the purchase price by 1,000 yen per tonne on Tuesday. Other makers are expected to follow the move when the dealers ship the materials to export and integrated steel makers. The purchase price level is around 25,000 yen higher from the beginning of the year. Local electric furnace steel makers are expected to increase the purchase price for high grade scrap when the price level is 1,000-2,000 yen per tonne lower for new cutting grade scrap than FAS shipping price from Tokyo bay and purchase price by integrated steel makers. Ferrous scrap price is also increasing around Osaka when Tokyo Steel increased the purchase price at plants in western Japan for the first time since April 22. The firm tries to secure the materials with higher price while the Okayama plant imports US scrap.