Strong Ferrous Scrap Price around Tokyo

Dealers’ purchasing price of ferrous scrap increased by 500 yen to 30,000 yen per tonne for H2 grade compared with last week around Tokyo. The latest price is around 30,000 yen for H2, around 32,300 yen for H1 and around 34,000 yen for HS. The background is that local electric furnace steel makers increased their purchasing price for ferrous scrap to reflect low scrap generation around Tokyo and the upsurge of ferrous scrap export price at Tokyo Bay.Ferrous scrap generation is low in summer season. The supply is tight when dealers’ purchasing volume is decreasing despite of the scheduled output reduction by local electric furnaces.The export price at Tokyo bay maintains firm thanks to the upsurge of ferrous scrap market price around Osaka and contracted export price for East Asia. Ferrous scrap is even flowing to yards around Tokyo bay and Japanese integrated steel makers.Local electric furnace makers are purchasing ferrous scrap at 35,000-36,000 yen per tonne for H2, some pay as high as 36,500 yen.