Ferrous Scrap Price Hits 29-Month High in Tokyo

Japanese ferrous scrap market price is increasing. Electric furnace steel makers’ purchase price in Tokyo hit 29 months high of 40,500 yen per tonne for H2 grade, increasing by 1,000 yen on Wednesday. Some electric furnaces in Osaka increased the purchase price.

Electric furnaces’ ferrous scrap purchase price is 39,000-40,000 yen per tonne for H2 grade and some makers pay 40,500 yen in Tokyo, which is 2,000-2,500 yen higher than the level in last week. The makers increased the price one after another since last week under tight supply due to export shipping.

Ferrous scrap price in Osaka is also increasing. Local electric furnaces’ purchase price is 39,500-41,000 yen per tonne for H2 grade and some makers pay around 42,000 yen. Tokyo Steel Manufacturing, Kishiwada Steel, Shinkansai Steel and Sanyo Special Steel increased the price by 1,000 yen on Wednesday.

Ferrous scrap supply also remains tight in Osaka. A trader source expects steel makers would try to increase the purchase for ocean transport. However, the scrap supply from Tokyo stays at lower level due to limited availability of domestic transport vessels.