Osaka, Ferrous Scrap Price Turns Up to 32,000 Yen/t

Ferrous scrap purchase price by local electric furnace steel makers is 30,500-32,000 yen per tonne for H2 grade around Osaka and some pay as high as over 32,000 yen. Ferrous scrap export price continued to be lower than domestic market price in October. Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, decreased the purchase price at 4 times in November.. Each maker reduced selling price across the country, but the supply and demand balance became tight around Osaka when dealers increased delivery of scrap to steel makers and dealers carried out joint export, according to dealer source. Because Tokyo Steel Manufacturing or local electric furnace steel makers raised purchase price of scrap from the first half of November, the market price turned up.

Tokyo Steel increased the purchase price by total 3,500-4,000 yen per tonne in November., and increased to 32,500 yen in Okayama iron works which makes impact to the market price around Osaka. Kishiwada Steel increased the purchase price by 500 yen per tonne from November 5th before Tokyo Steel’s price hike, which increased for the first time in 2 months. The purchase price of it broke at 30,000 yen per tonne for H2 grade by local steel makers around Osaka in the mid-.November.

Dealers can’t contract the export negotiation to East Asia. The contracted price is around FOB 31,000 yen per tonne for H2 to Hyundai Steel, South Korean largest electric furnace steel maker, in recent days. On the other hand, domestic electric furnace steel makers offer the purchase price at FOB 32,000-33,000 yen per tonne, and it is different largely between export price and domestic price, according to large dealer source.