Ferrous Scrap Price Rises in Tokyo

Electric furnace steel makes’ ferrous scrap purchase price increased around Tokyo for the first time in a month when Tokyo Steel Manufacturing and other local increased the price. They pay 36,000-37,500 yen per tonne for H2 grade and some pay as high as 38,500 yen. Some electric furnaces reduced the purchase price around Osaka due to less consumption under maintenance outage. Scrap supply is still low level and local scrap dealers get smaller arrivals from the market. Some of the supply direct to yards around Tokyo bay to ship other areas in Japan and offshore market. With the tight supply, the supply balance is still tight despite of the output reduction by local electric furnaces. Tokyo Steel’s Utsunomiya plant increased the scrap purchase price by 1,000 yen per tonne for all scrap grades on Tuesday. The price increased to record 38,500 yen for H2, 41,000 yen for new cutting scrap without press and 32,000 yen for steel turning scrap. Osaka plant of Godo Steel reduced the scrap purchase price by 500 yen per tonne for heavy and turning scrap grades on Saturday. Kyoei Steel reduced the price by 500 yen at Osaka and Hirakata plants and Nakayama Steel Products reduced the price by 500 yen. Tokyo Steel’s Okayama plant increased the H2 grade price to 41,000 yen per tonne for land transport and 40,000 yen for ocean transport on Tuesday. Electric furnaces around Osaka pay 38,500-39,000 yen per tonne for H2 grade, which is the highest level in the year.