Ferrous Scrap Price Hits First Rise in 2 Months

Ferrous scrap price increased for the first time in around 2 months around Tokyo. Local steel makers increase the scrap purchase price when the export price rebound for South Korea and the scrap shipping increases from Tokyo bay. The price around Osaka also shows sign to rebound under increasing cargo price from Tokyo. The price could keep increasing trend around Tokyo when the scrap export keeps high level in December.

Local electric furnace steel makers’ scrap purchase price is 27,000-29,000 yen per tonne for H2 grade around Tokyo. Many of the makers increased the price by 1,000 yen on Tuesday.

The scrap export price started to increase since mid-November. The shippers around Tokyo bay increased the purchase price to FAS 27,000-27,500 yen per tonne. Some of local steel makers around Tokyo bay adjusted to increase the scrap purchase price but after Tokyo Steel Manufacturing’s Utsunomiya plant increased the purchase price for the first time since September 16, other makers followed the move.

The scrap shipping from Tokyo bay is high level. A trading firm source said the local steel makers could increase the scrap purchase price more when the local supply gets tighter under low level scrap generation.

Electric furnace steel makers around Osaka pay 26,000-28,000 yen per tonne for H2 grade scrap. Tokyo Steel kept the scrap purchase price at Okayama plant while the firm increased the price at Utsunomiya and Tahara plants. Other makers around Osaka keep the scrap purchase price but some makers adjust the scrap purchase especially for weekend higher operation.

A dealer around Osaka said local scrap supply decreases for local steel makers. The scrap offer price exceeded 30,000 yen per tonne delivered to Osaka area from Tokyo area. A trading firm said local makers with heavy dependence on ocean transport could increase the scrap purchase price to secure the material.