Higher Ferrous Scrap Purchase Price by Electric Furnaces in Tokyo

Electric furnace steel makers around Tokyo increased the ferrous scrap purchase price by 500-1,000 yen per tonne in a week. The price increased to 39,000-40,500 yen per tonne for H2 grade and some makers pay as high as 41,000 yen. They try to build scrap inventory to secure requirement during a week long yearend holiday. Local scrap generation is still low level and the dealers’ shipment is slower than November. A dealer source said local makers try to secure materials in the year when the dealers don’t supply materials during the holiday. Tokyo Steel Manufacturing’s Utsunomiya plant increased the purchase price by 500-1,000 yen to 41,000 yen per tonne for H2 grade on Saturday. Some other makers also increased the purchase price. Local makers increased the price 3-4 times and the price level increased by 4,000-4,500 yen during the month.