Strong Ferrous Scrap Price around Tokyo and Osaka

Ferrous scrap market price is strong around Tokyo. The market price is around 34,000 yen per tonne for H2 grade, 35,800 yen for H1 and 37,500 yen for HS at dealers’ sites including freight. Local electric furnace steel makers pay 39,500-40,500 yen for H2 and some pay as high as 41,000-41,500 yen. The purchasing price is higher by 1,000-2,000 yen than last week.

Scrap delivery to dealers maintains low level due to slow scrap generation in the market. Several dealers suggested scrap generation in automotive industry plants is decreasing largely after Japan Earthquake. On the other hand, dealers are shipping ferrous scrap to exporters around Tokyo Bay. Thus local supply and demand balance keeps tight.

Around Osaka, the market price is is strong at 32,000 yen for H2 grade. Local electric furnaces purchase H2 at 39,500-41,000 yen and some pay as high as 42,000 yen. Some of electric furnaces raised the purchase price last week. Steel makers seem increasing scrap orders such for turning scrap.

A large dealer source said export contracts with South Korean importers are not smooth due to relatively high price of Japanese scrap. Meanwhile, it is said that scrap delivery from East Japan is increasing and local electric furnaces are likely to be finishing scrap procurement before long holidays in early May.