Japanese Ferrous Scrap Market Price Recovers 35,000 Yen/t

Japanese ferrous scrap market price turned upward. Electric furnace steel makers’ purchasing price reached 35,000 yen per tonne for H2 grade ferrous scrap around Tokyo and Osaka again. Scrap export price to South Korea has risen while ferrous scrap orders are increasing from domestic electric furnaces along an expectation for steel demand increase in and after autumn. One large scrap dealer said users are starting scrap procurement when market price of steel products shows a rebounding sign.

Electric furnace steel makers around Tokyo purchased H2 at around 34,500-35,500 yen per tonne and some paid as high as 36,500 yen as of Monday. Most steel makers raised the purchase price by 500-1,000 yen on Saturday. They show aggressive procurement intentions when their steel output is expected to increase. They mostly completed seasonal maintenances in summer while ferrous scrap export price is rising.

Some steel makers left the purchase price unchanged due to excessive inventory of ferrous scrap. However, one dealer source said the supply and demand is expected to tighten due to twice 3-day weekends in mid-late September. The market price is expected to represent firm.

Electric furnaces around Osaka purchase H2 at around 34,000-35,000 yen per tonne and some pay as high as 35,500 yen. Kishiwada Steel raised the price by 700 yen on Saturday, except for turning scrap. Nakayama Kogyo raised the price by 800 yen, too. Himeji works of Godo Steel increased the price by 1,000 yen. JFE Bars & Shapes increased by 1,500 yen. They followed the price hike by Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker.