Ferrous scrap market price is strong around Tokyo and around Osaka. Electric furnace steel makers increased ferrous scrap purchase price in September when the scrap supply gets tighter due to higher crude steel output with two three-day weekends in the month. However, the market price around Osaka is lower than the price around Tokyo when some makers around Osaka keep the purchase price unchanged.A trading firm source sees some electric furnaces keep ferrous scrap purchase price unchanged under low steel selling price while the dealers are building inventory with expectation for price increase. Electric furnaces’ ferrous scrap purchase price around Tokyo is 35,500-36,500 yen per tonne for H2 grade and higher price is 37,500 yen. The price increased by 2,500-3,000 yen from the beginning of September. Local electric furnaces increase the scrap consumption when they increase the operation rate while the scrap supply stays at low level. The local scrap exporters’ purchase price would gradually increase from around FAS 35,000 yen. Electric furnaces’ ferrous scrap purchase price is 35,000-35,500 yen per tonne for H2 grade around Osaka and some makers pay around 36,000 yen. One dealer source sees the makers could keep the purchase price unchanged in September while the dealers’ scrap stock would decrease due to shipping for the joint export.
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