Electric Furnace Steels Increase Ferrous Scrap Buy Price in Tokyo and Himeji

Ferrous scrap purchasing price by electric furnace steel makers increased by 500-1,000 yen per tonne2 from the last week around Tokyo. They increased the purchase price to over 2,000 yen for H2 in this month, which pay 35,000-36,000 yen per tonne for H2 grade. Their purchase prices are likely to rise when the export tender price is rising from Tokyo bay. Utsunomiya plant of Tokyo Steel Manufacturing increased the scrap purchase price by 500 yen per tonne from Tuesday. The plant purchase price is 36,500 yen per tonne for H2, 37,000 yen for new cutting scrap without press and 29,000 yen for turning scrap. Other local makers followed the move to increase the purchase price by 500-1,000 yen. They pay 34,500-35,000 yen for H2 grade and some pay as high as 36,000 yen. New export tender price from Tokyo bay is firm. Hyundai Steel, South Korean steel maker, offered FOB 38,000 yen per tonne for H2 in Japanese ferrous scrap tender in March 21. The export tender price is higher than the makers’purchase price around Tokyo. The purchase price increased around Himeji area near Osaka when Tokyo Steel Manufacturing raised the purchase price by 500 yen per tonne in the firm’s all plant. In same day, Himeji plant of Godo Steel, Sanyo Special Steel, Yamato Steel, Himeji plant of JFE Bars & Shapes Corporation increased their purchase price by 500 yen. The purchase price is 38,500 yen for land transport and 39,000 yen for ocean transport for Tokyo Steel’s Okayama plant, and 38,000 yen for H2 without freight for Yamato Steel. Yamato Steel’s purchase price increased by 6,000 yen per tonne or 19% for H2 from the beginning of this year. The firm raised the purchase price by 4,000 yen in February, exceeded the increased range of Tokyo Steel Manufacturing’s Okayama plant purchase price which increased by 2500 yen for ocean transport and 2000 yen for land transport. Yamato Steel purchased aggressively when the delivery for ocean transport is low. Other makers are following Tokyo Steel’s price hike.