Electric Furnaces Raise Ferrous Scrap Buy Price

Electric furnace steel makers’ ferrous scrap purchase price increased by 1,000 yen per tonne in a week around Tokyo. Tokyo Steel Manufacturing increased the price to 45,550 yen for H2 grade at Utsunomiya plant on Tuesday, which is the highest level since the start in 1995. The tight supply lifted the price with low level local scrap generation and strong demand from Osaka and Offshore buyers. Local steel makers around Tokyo pay 44,000-45,000 yen per tonne for H2 grade after they increased the purchase price by 1,000-1,500 yen per tonne on Tuesday. Offshore buyers increase the offer price and Osaka’s makers increase the purchase volume from Tokyo area while the local scrap generation is low level. Scrap shipping FAS price from Tokyo bay increases and the dealers ship the materials for shipping instead for local steel makers. A dealer source said the dealers’ attitude impacts on local makers’ scrap arrival. Hyundai Steel of South Korea and other offshore buyers are likely to increase the scrap purchase from Japan when US scrap market price surges. Japanese scrap industry expects the market price could keep firm nationwide.