Higher Ferrous Scrap Price in Tokyo

Hyundai Steel of South Korea offered 500 yen per tonne higher price for Japanese ferrous scrap at weekly tender on Wednesday, which represents increases for 3 weeks in a row. The price reached FOB 45,000 yen per tonne for new cutting grade, 39,500 yen for H2 and 42,500 yen for HS grade. Ferrous scrap purchase price by electric furnace steel makers around Tokyo increased by 1,000 yen in the week. The price reached 39,000-40,000 yen per tonne for H2 grade and some makers pay as high as 41,500 yen. The price is expected to increase more under competition with export price. Scrap supply around Tokyo is still low and the dealers ship the materials to yards around Tokyo bay, instead of electric furnaces. The makers apparently get lower scrap arrivals. Tokyo Steel Manufacturing’s Utsunomiya plant increased the purchase price by 1,000 yen to 41,500 yen per tonne for H2 grade and to 44,000 yen for new cutting grade on Wednesday. The other local steel makers followed the move to increase the scrap purchase price by 1,000 yen per tonne. The averaged scrap purchase price by local makers increased by 9.7% or 3,000-4,000 yen in the month.