Higher Ferrous Scrap Price in Tokyo

Ferrous scrap market price increased by 500 yen to 29,500 yen per tonne for H2, to 31,800 yen for H1 and to 33,800 yen for HS at dealers’ purchase price including freight around Tokyo. The price is likely to keep the level when local electric furnace steel makers’ purchase price is competitive with export price. Local steel makers pay 35,500-36,500 yen per tonne for H2 grade scrap and some pay as high as 37,000 yen. Hyundai Steel of South Korea offered FOB 36,500 yen per tonne for Japanese H2 grade scrap at weekly tender on Wednesday, which was flat as previous week. Local scrap dealer source said local steel makers couldn’t reduce the scrap purchase price to compete with export price despite of lower consumption for maintenance outage. Ferrous scrap market price is firm at around 27,000 yen per tonne for H2 grade around Osaka.