Japan Weekly Steel Scrap Composite Price Rises Again

Japan Steel Scrap Composite Price increased in the fourth week of August as third week. The price increased by 1,700 yen to 23,100 yen per tonne for H2 grade and to 28,000 yen for new cutting grade at averaged dealers’ purchase price in Tokyo, Osaka and Nagoya from previous week.

The dealers’ purchase price increased by 500 yen to around 26,000 yen per tonne for H2 grade scrap around Tokyo. The price increased by 3,000-4,000 yen from the beginning of the month when they increased the price to secure the scrap under tight supply while local steel makers and plants including Tokyo Steel Manufacturing increased the purchase price. Local electric furnace steel makers pay 31,000-32,500 yen for H2 grade on Monday.

The dealers’ purchase price is 19,800 yen per tonne for H2 grade around Nagoya. Local electric furnace steel makers pay 30,000 yen for H2 and 36,000-37,000 yen for new cutting scrap. The export transaction is slower mainly for South Korean buyers than earlier the month. Some buyers reduce the bid to new cutting scrap and the dealers try to liquidate the inventory. A trader source said the price could decrease as early as in first half of September if South Korean buyers would reduce the purchase volume when local steel makers are still in summer time maintenance outage.

The scrap market is strong around Osaka. The dealers’ purchase price is around 23,500 yen per tonne for H2. Local electric furnace steel makers pay 30,500-32,000 yen for H2 grade or more. The makers’ purchase price reached 30,000 yen again after the makers’ price increase in last week. The exporters try to secure scrap at higher price. A dealer source said some buyers pay as high as local makers’ offer for H2 and lower grade heavy scrap along with HS and new cutting scrap.