Higher Ferrous Scrap Price in Tokyo

Electric furnace steel makers increased the ferrous scrap purchase price by 1,000 yen per tonne in the week around Tokyo. They pay 64,500-65,500 yen for H2 grade and some makers pay as high as 66,500 yen. The price level is likely to keep increase trend under higher export price from Tokyo bay. The scrap shipping price from Tokyo bay is higher than purchase price by electric furnace steel makers depending on scrap grades. The dealers try to ship the materials for bay area to take chance for higher price. The local scrap supply gets tighter with strong appetite by integrated steel makers and special steel electric furnace steel makers. Tokyo Steel Manufacturing increased the scrap purchase price by 1,000 yen to 65,500 yen per tonne for H2 grade at Utsunomiya plant on Tuesday. Some other makers followed the move. Their purchase price is around 24,000 yen higher than the level at beginning of the year.