Ferrous Scrap Price to increase in Tokyo

Ferrous scrap market price would increase around Tokyo after the price slightly increased in early September. The price is around 28,500 yen per tonne for H2 grade at the dealers’ purchase price including freight. Local electric furnace steel makers pay 34,000-35,000 yen for H2 grade while higher price is 35,500 yen.

Ferrous scrap price around Tokyo increased in September for the first time since early July when the scrap export price shows sign of rebound. The scrap export price is FOB 34,000-34,500 yen per tonne for H2 grade for East Asia, which is 500-1,000 yen higher than the recent bottom. The exporters increased the scrap purchase price to around FAS 33,500 yen and the price would increase more.

Some local electric furnaces hold the scrap inventory and keep the purchase price unchanged. However, market sources see the makers increase the scrap purchase price due to steel demand increase in autumn. One dealer source sees the makers would increase the scrap purchase price to prepare for the operation in two three-day weekends in September.