Japan Steel Scrap Composite Price Increases by 300 yen/t

Japan Steel Scrap Composite Prices, which are averaged ferrous scrap market price in Tokyo, Nagoya and Osaka, increased by 300 yen to 27,400 yen per tonne for H2 grade at the dealers’ purchase price including freight last week. The price increased by 300 yen to 32,100 yen for new cutting press. The price was US$ 335.46 for H2 grade and US$ 393.00 for new cutting press, which was calculated based on 81.68 yen of telegraphic transfer selling rate per US dollar.

The dealers’ scrap purchase price is around 28,000 yen per tonne for H2 grade around Tokyo. Local electric furnace steel makers’ purchase price is 33,500-34,500 yen and some makers pay around 35,000 yen. One dealer source said the market price depends on export transaction while major electric furnaces set the purchase price unchanged during 3 weeks.

Local electric furnaces’ scrap purchase price is flat with potential weakness at around 36,500-37,000 yen per tonne for H2 grade and around 42,000 yen for new cutting press around Nagoya. Some local special steel makers decreased the purchase price to adjust higher price than other areas. The supply demand balance is still tight due to higher operation level of makers. However, one dealer source sees the balance would get loose in summer when the makers reduce the output to save electric power consumption while the scrap generation increases.

The dealers’ scrap purchase price is around 28,000 yen for H2 grade around Osaka. Some local electric furnaces reduced higher purchase price than other areas last week. One dealer source sees the price could turn downward in July when the demand slows due to output reduction by local electric furnaces.