Japan Ferrous Scrap Market Price Increases by 5,000 Yen/t

Japanese ferrous scrap market price continues increasing by about 4,000-5,000 yen per tonne or 17% for H2 grade from the beginning of November. The supply and demand balance is rapidly tightening for heavy scrap, mainly used by electric furnace steel makers, compared with HS and new cutting scrap those which are also consumed by integrated steel makers. Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, raised the purchase price of ferrous scrap on Tuesday. This was the first price hike in recent 3 weeks.

Scrap dealers’ shipment decreased during a month by the end of October when domestic market price was in downtrend, according to a dealer source. Market inventory maintains low level. Domestic market price rebounded in November. However, electric furnaces couldn’t purchase ferrous scrap enough and were forced to raise the purchase price.

Around Tokyo, local electric furnace steel makers raised the purchase price this week. The purchase price increased by 1,000 yen to 32,000-33,000 yen per tonne for H2 and some pay as high as 33,500 yen. Some makers didn’t change the purchase price as of Tuesday. But the makers are likely to move into the price hike when scrap supply is expected to maintain tight due to continuous shipment of scrap export, according to a dealer source.

Around Osaka, electric furnace steel makers’ purchase price is 31,500-33,000 yen for H2. Some pay as high as 33,000 yen. Godo Steel, Kishiwada Steel and Nakayama Kogyo raised the purchase price by 500-1,000 yen on Tuesday.