Fe Scrap Price Surges, SUS304 Scrap Price Downs in Japan

Ferrous scrap market price continued to surge in Japan at the end of last week. Electric furnace steel makers raised their scrap purchasing prices when scrap supply and demand balance keeps tight. Meanwhile, several sources suggest it is unclear whether the market price continues to rise or not since domestic market price is higher than Japanese scrap export price.

Electric furnace steel makers around Tokyo paid 31,000-32,000 yen per tonne or 32,500 yen at the highest for H2 as of Friday. The price has upped by 1,000-1,500 yen from the previous week and by 3,500-4,500 yen since the beginning of November. Tokyo Steel Manufacturing and other electric furnaces raised their purchasing price by 500 yen on Friday.

Local scrap supply is expected to keep tight. Steel makers’ production is estimated to increase in November from October. At the same time, export shipment continues at Tokyo Bay.

Around Osaka, electric furnaces purchase H2 grade at 29,500-31,000 yen. The price is the highest since early October. Tokyo Steel Manufacturing raised the purchasing price on Friday and other steel makers in Himeji area, Yamato Steel and JFE Bars & Shapes announced the price hike on the same day.

On the contrary, stainless steel scrap market price decreased for SUS304 series in Japan. Domestic stainless steel makers and special steel makers lowered their scrap purchasing price last week. Scrap exporters also decreased the purchasing price.

The makers’ purchasing price temporarily reached 200,000 yen per tonne in October but the market price turned weak. Scrap export is slowing down due to strong yen trend and scrap inventories increased at domestic steel makers.