Electric Furnaces Raise Scrap Buy Price around Tokyo

Electric furnace steel makers around Tokyo increased the ferrous scrap purchase price for the first time in 2 months. The price increased to 35,500-37,000 yen per tonne and some makers pay as high as 37,500 yen, which increased by 500-1,000 yen from previous week. The price increases under tight supply and higher FAS shipping price from Tokyo bay. Electric furnaces’ scrap purchase price decreased by 5,000 yen per tonne in one and half months from early October under slower scrap shipping from Tokyo bay. The scrap export price also decreased along with domestic price. Japanese scrap price was relative lower than international level. Steel makers in Taiwan and China resumed the purchase of Japanese scrap, some of which was higher than purchase price by local electric furnaces. Local scrap market experiences tight supply. The dealers said the local supply is still tight after the dealers liquidated the inventory in November. The local market increased by 500-1,000 yen per tonne when Tokyo Steel Manufacturing’s Utsunomiya plant and other makers increased the scrap purchase price. However, the local consumption is expected to keep low when local electric furnace steel makers reduce the output level. With the slower demand, some dealers expect the price couldn’t increase.