Japan Ferrous Scrap Market Price in Strong Tone

Japanese ferrous scrap market is in strong tone. The domestic market price keeps almost flat since late December while the export price presently rises. Domestic electric furnace steel makers currently purchase H2 at around 35,000-36,500 yen per tonne, higher by about 10,000 yen than the beginning of 2010.

In Tokyo, the market price is 36,000-37,000 yen for H2 grade and some pay as high as 37,500 yen. Local electric furnaces set the purchasing price unchanged since late December. Scrap dealers’ shipment is still inactive only after New Year holidays. Domestic market price is expected to rise if the export volume increases and the international market price maintains steady, according to a dealer source.

The market price around Osaka is also in upward trend. Local electric furnaces purchase H2 at around 35,000-36,000 yen. Some electric furnaces raised the purchase price last week. Dealers’ shipment is inactive until mid January as in usual years. A major scrap trader said steel makers’ scrap inventory should be decreasing at present while local scrap supply is tight. Steel makers may need to raise their purchasing price or move to spot procurement in order to secure materials.