Tokyo, Ferrous Scrap Purchasing Price Increased to 40,000 y/t

Ferrous scrap purchasing price of electric furnace makers achieved to 40,000 yen per tonne into this month around Tokyo due to increased export contracted price and expanding output by makers.

Local electric furnace makers’ purchasing price increased to 39,000-41,000 yen per tonne by 4,000-4,500 yen or 11% in this month compared with last month, some pay as high as 41,500 yen. Ferrous scrap generation keeps low in autumn. Dealers’ purchase volume is decreasing.

The export price to South East Asia rose from the first half of last month. Consequently, dealers’ shipments are flowing to Tokyo bay. Moreover, Japanese integrated steel makers are increasing the order for high grade scrap which is such as new cutting scrap.

Utsunomiya works of Tokyo Steel Manufacturing which is biggest electric furnace maker increased the purchasing price of ferrous scrap in the 5th and increased to 41500 yen per tonne for H2 grade and 44,000 yen for new cutting scrap. Other makers increased the purchasing price, too.

Following Tokyo, electric furnace makers’ purchasing price achieved to 40,000 yen per tonne around Osaka. The market price around Tokyo increased due to increased Tokyo Steel’ purchasing price and export price earlier than Osaka. In Osaka, local makers raised the purchasing price in last week. Kishiwada Steel raised the price from October 6 since July 26.

Local makers’ purchase price increased to 39,000-40,500 yen per tonne by 750 yen or 1% for H2 over the previous week and by 12,500 yen or 46% compared with the same month of last year.

The market price has kept being flat due to the scheduled intermission for makers’ operation intermission in summer. The scheduled intermission finished at the ended of September. Because the makers increased the output from October, they increased the purchasing volume of ferrous scrap.