Ferrous scrap market price is flat at around 36,500-37,500 yen per tonne for H2 grade at local electric furnace steel makers’ purchase price and some pay as high as 38,500 yen under wider price gap with Tokyo. Some local electric furnaces increased the scrap purchase price late May under tight supply. However, one dealer source said the higher price around Osaka wouldn’t keep longer while the price is low partly due to lower export price for East Asia.
Ferrous scrap market price in Osaka is 3,000-4,000 yen higher than the price in Tokyo. One trading firm source said the price gap is the widest in the past decade. A trading firm source sees the supply remains tight in Osaka. However, the source sees steel output could significantly decrease in July when local makers’ order receipt is very thin from general contractors. A dealer source sees ferrous scrap supply would increase for Osaka from other areas including ocean transport from Tokyo when the market price remains high in Osaka. The market price depends on the supply condition.Japan Steel Scrap Composite Prices (Sangyo Press)
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