Higher Ferrous Scrap Price in Osaka

Ferrous scrap market price increased more around Osaka under rebounding export price. Local electric furnace steel makers increase the scrap purchase price since late June when they get less scrap arrivals. The makers increased the purchase price again in the week and Osaka Steel raised the price on Wednesday. The purchase price increased to 36,000-37,000 yen per tonne, which is around 1,000 yen higher than recent bottom. The scrap export price increased by 2,000 yen per tonne when Hyundai Steel raised the offer to 36,500 yen for Japanese H2 grade at weekly tender last week. The successful tender price was also FAS 35,575 yen per tonne for H2 at tender by Kansai Tetsugen on Friday, which was 2,135 yen higher than a month ago. Japanese largest electric furnace steel maker, Tokyo Steel Manufacturing increased the scrap purchase price by 500 yen per tonne at all plants on Tuesday to compete with export price. The Okayama plant’s purchase price increased by 2,000 yen to 38,000 yen per tonne for land transport and by 2,500 yen to 38,500 yen for ocean transport, from recent bottom. Tokyo Steel’s purchase price hike impacted on the local market. Local yard dealers try to build the inventory from the current very low level preparing for export shipping. The supply to local steel makers could decrease under the tight supply. Osaka Steel increased the purchase price by 1,500 yen per tonne at Sakai and Okajima plants, in Osaka.