Japan Ferrous Scrap Composite Price Increases for 7 Consecutive Weeks

Japan Ferrous Scrap Composite Price increased for 7 consecutive weeks, which is an averaged purchase price by scrap dealers in Tokyo, Osaka and Nagoya. The price increased by 900 yen to 31,300 yen per tonne (US$ 377.39) for H2 grade in the forth week of February while surged by 80 yen to 34,800 yen per tonne (US$ 419.48) for new cutting press.

Around Tokyo, the price increased by 1,000-1,500 yen to 33,500 yen for H2 grade. Local electric furnace steel makers purchased H2 at 39,000-40,000 yen and some paid as high as 40,500 yen as of February 25th. Dealers’ purchasing price maintains upward trend since mid February when local steel makers raise purchasing price step by step. Scrap supply is tight and delivery volume doesn’t increase despite of dealers’ price hike, according to a dealer source.

In Nagoya, the market price is 27800 yen per tonne for H2 grade. Local steel makers pay 39,000-39,500 yen for H2 and 41,500-42,000 yen for new cutting scrap. Scrap supply and demand balance keeps tight due to firm demand and low generation.

Around Osaka, the market price is 32,500 yen for H2. Tokyo Steel and local electric furnace steel makers raised the purchasing price last week. The market price is rising rapidly though scrap generation is slightly increasing from building demolition, according to a dealer source. Local electric furnaces pay 40,000-41,000 yen for H2 and some pay as high as 42,000 yen.