Firm Ferrous Scrap Price around Tokyo

Ferrous scrap price is increasing at around 18,500 yen per tonne for H2 grade, around 20,800 yen for H1 and around 22,500 yen for HS at dealers’ purchase price including freight around Tokyo. The price increased by 5,000 yen or 37% from recent bottom in early February. The market focuses on export price for July shipment at tender held by Kanto Tetsugen. If the price would keep the level as FAS 26,300 yen per tonne at previous tender, the market price could increase more.The local supply is easing and electric furnace steel makers get higher arrivals when scrap export shipping is decreasing to weekly 30,000-40,000 tonnes level. The scrap generation keeps low level and dealers have trouble to secure scrap to ship for electric furnaces. The makers pay 26,000-27,000 yen per tonne for H2. Tokyo Steel Manufacturing keeps the purchase price after the firm increased the price to 27,000 yen at Utsunomiya plant. Scrap shipping price is FAS 25,500-26,500 yen per tonne for H2, which competes with makers’ purchase price. Asian steel makers have less appetite for Japanese scrap.