Higher Ferrous Scrap Price in Tokyo

Electric furnace steel makers around Tokyo increased the ferrous scrap purchase price late last week. The market price is expected to increase more when scrap shipping price from Tokyo bay increases for export. Utsunomiya plant of Tokyo Steel Manufacturing increased the scrap purchase price by 1,000 yen per tonne for turning scrap and by 500 yen for other grades on Friday. The purchase price increased to 28,500 yen for H2. Some local makers followed the move to increase scrap purchase price slightly. Their purchase price increased to around 27,000 yen per tonne for H2 when local makers try to compete with scrap export price from Tokyo bay. The market leading scrap export price from Tokyo bay increased to around FAS 27,000 yen per tonne, which increased by around 1,000 yen from August. Japanese scrap export price increased by 1,000 yen to FOB 28,500 yen per tonne for H2 at export tender held by Hyundai Steel of South Korea on Wednesday. Market interests expect scrap market price around Tokyo will increase toward demand season.