Higher Ferrous Scrap Price from Tokyo Bay

Ferrous scrap price reached around FAS 33,000 yen per tonne at purchase price around Tokyo bay last week. The shipping volume was estimated to be more than 50,000 tonnes last week from Tokyo bay when the export shipment increased since previous week. The higher demand pushed up the price.

The scrap export price keeps increasing for South Korea. The price is around FOB 32,500-33,000 yen per tonne for H2 grade and 35,500-36,000 yen for new cutting grade, according to Japanese industry sources. The price increased by 500-1,000 yen for H2 grade from previous week. The higher export price pushed local price to FAS 32,500-33,000 yen around Tokyo bay.

The higher local price could reduce the export transaction in volume and ports, according to local dealer source. Japanese exporters apparently offer FOB 34,500-35,000 yen per tonne for export.

Local electric furnace steel makers also increased the scrap purchase price to meet the higher price around Tokyo bay. The makers pay 32,000-33,000 yen per tonne for H2 grade, which was around 3,000 yen higher than the price at the beginning of the month.

Ferrous scrap price increases in Asian market when US export price rebounded to Taiwan and Southeast Asia. US exporters increase the offer to East Asia. A trading firm source said South Korean steel makers increase purchase of Japanese scrap despite of the increasing price since mid-February due to uncertainty of Russian export situation.