Japan Ferrous Scrap Price is Hit Ceiling

Japanese ferrous scrap market price is starting to hit the ceiling in domestic and overseas market. Because Japanese export negotiation grow stagnant to East Asia, scrap dealers reduced the purchase price and limited purchase volume in Tokyo bay. Some electric furnace makers increased the purchase price in August 31. But a dealer source said the market price isn’t expected to more rise and dealers increase sales volume. Ferrous scrap demand in September is expected to increase from August. A large dealer source said ferrous scrap export price is flat to South Korea due to higher yen rate and the demand for ferrous scrap is firm in South Korea.

Ferrous scrap export price increased to FOB 32,000-32,500 yen per tonne for H2 grade to East Asia in the mid-August. A large dealer source said overseas users don’t buy ferrous scrap with offer price at FOB 32,000 yen from last week and this week. American ferrous scrap price became flat for the first time in 5 weeks.

Ferrous scrap purchase price by electric furnace makers increased to 31,000-32,000 yen per tonne by 500 yen for H2 grade from last week, and some pay as high as 32,500 yen. A dealer source said ferrous scrap price doesn’t overflow rapidly when dealers’ inventor y is low level and ferrous scrap export maintains by existed contract.

Electric furnace makers’ purchase price for ferrous scrap is 31,000-32,500 yen per tonne for H2 grade and some pay as high as over 32,500 yen. Osaka Steel raised the purchase price at ended last week. Kishiwada Steel increased the price by 1,500 yen for H3, 2,000 yen for L1 and 1,000 yen for other products. Nakayama Kogyo increased the price by 1,000 yen.

Because ferrous scrap price is firm for integrated steel makers, dealers are increasing to fit to integrated steel makers.