Strong Ferrous Scrap Price in Tokyo

Ferrous scrap market price is increasing. Dealers’ ferrous scrap purchase price increased to around 40,000 yen per tonne by 2,500 yen for H2 from last week around Tokyo. Electric furnace steel makers’ ferrous scrap purchase price increased to 45,500-46,500 yen by 2,500 yen per tonne in a week around Tokyo and some pay as high as 47,000 yen.

The supply and demand of ferrous scrap is tight around Tokyo when dealers’ purchase volume is decreasing due to reduced scrap generation and strong order by exporter and Japanese integrated steel makers.

Tokyo Steel Manufacturing increased the purchase price to 47,000 yen per tonne by 1,500 yen for all item at Utsunomiya plant on Thursday. Other makers increased the price by around 1,500 yen per tonne.

Ferrous scrap export contract price is firm. Japanese ferrous scrap export price increased by 2,407 yen to FAS 45,550 yen per tonne from Tokyo bay for H2 grade for March shipment from previous month at monthly export tender held by Kanto Tetsugen on 13 January, which was the record high.

Hyundai Steel of South Korea increased the offer for Japanese ferrous scrap by 2,500 yen per tonne to around FOB 47,500 yen for H2 grade at weekly tender on Wednesday.

Export price based FAS from Tokyo bay exceeded by about 1,000 yen per tonne compared with local makers’ purchase price.