Electric Furnace Steels Raise Ferrous Scrap Buy Price in Tokyo

Electric furnace steel makers increase the ferrous scrap purchase prices around Tokyo since late last week. They pay 33,500-34,000 yen per tonne for H2 grade when offshore steel makers try to secure Japanese scrap at higher price after higher Kanto Tetsugen’s export tender price. With the export demand, the local market is likely to increase more. Utsunomiya plant of Tokyo Steel Manufacturing increased the scrap purchase price by 1,000 yen to 35,000 yen per tonne for H2, to 36,500 yen for new cutting grade and to 28,500 yen for steel turning scrap on Saturday. Other local makers followed the move to increase the purchase price by 500-1,000 yen per tonne. They pay 33,500-34,000 yen for H2 grade and some pay as high as 35,000 yen. Japanese scrap export price, which lifts domestic market price, increases for new order. Successful bid hit record at averaged FAS 35,995 yen per tonne for H2 for April shipment at monthly export tender held by Kanto Tetsugen on March 13. Hyundai Steel of South Korea offered FOB 37,500 yen per tonne for H2 grade Japanese scrap at the weekly tender held on March 14. Those export prices are higher than purchase price by local steel makers.