Firm Ferrous Scrap Price in Osaka

Ferrous scrap purchase price by electric furnace steel makers around Osaka keeps firm at 25,000-26,000 yen per tonne for H2 grade though the price is flat from last week. The price is 6,000 yen or 31% higher from a year earlier. Scrap export price to eastern Asia is increasing from USA and Russia. Japanese scrap export price, which started to decrease in April 2005, also keeps the high level supporting local market price. Chinese scrap buyers restarted the scrap purchase from Japan while Japanese scrap export price decreased for South Korea. The export price to China is FAS 26,300-26,500 yen per tonne for H2 for July shipment though the Chinese demand is still uncertain to recover. Successful bid was US$ 254 per tonne at CIF Japan for H2 at the tender held by Hyundai Steel in the week. The price increased by around 500 yen per tonne from last week. Tokyo Steel Manufacturing, which kept the scrap purchase price since mid-May, increased the purchase price by 500 yen per tonne for all grades at Okayama, Kyushu and Takamatsu plants on Wednesday. The purchase price for H2 grade is 28,500 yen at Okayama plant, which increased by 8,000 yen or 39% from same period of 2005. Yamato Steel followed the move on Wednesday to increase the purchase price to 27,000 yen for H2, which increased by 7,000 yen or 35% higher from a year ago, with 500 yen of freight extra for purchase from other area. Scrap export shipping will start from the end of June for order awarded at export tender held by an association of scrap dealers’ around Osaka. A dealer source said the local supply could decrease mainly for heavy scrap toward the export shipping. The local market price is likely to keep firm though scrap shipment from other areas to Osaka area will impact on the local supply balance.