Japan Ferrous Scrap Export Lifts Market Price

Japanese ferrous scrap market price is increasing. Electric furnace steel makers’ purchasing price is approaching 30,000 yen per tonne for H2 grade again. Strong export market price especially around Tokyo Bay is pulling up the domestic market price. Ferrous scrap shipment is recently increasing to East Asia and the newly export contract price is surging.

Local electric furnaces around Tokyo mainly pay 28,500-29,500 yen per tonne for H2 grade. Tokyo Steel Manufacturing’s Utsunomiya plant raised the purchasing price by 500 yen on Saturday and other local steel makers followed the hike.

Local market price is 2,500 yen higher than the price in the previous week. Ferrous scrap export to East Asia turned favorable and shippers around Tokyo Bay currently offer high prices to collect materials.

On the other hand, scrap generation maintains low. Some of local steel makers seem to have decreased scrap inventory in October-November when the market price was weak, said a trader source. Thus local supply and demand balance is tightening.

Electric furnaces around Osaka pay 27,500-28,500 yen for H2 and some pay as high as 29,000 yen. In Himeji area, Yamato Steel raised the purchasing price by 500 yen to follow Tokyo Steel’s price hike. Other electric furnaces around Osaka also raised the purchasing prices for the first time in late two months.