Japan Steel Scrap Composite Price Shows First Increase since April

Japan Steel Scrap Composite price, which is averaged purchase price by scrap dealers in Tokyo, Osaka, and Nagoya, increased last week for the first time since the fourth week of April. The price increased by 1,800 yen to 21,400 yen per tonne for H2 grade and to 26,300 yen for pressed new cutting scrap in the third week of August from the previous week.

The dealers’ purchase price is around 25,500 yen per tonne for H2 grade around Tokyo, which increased by 2,500 yen from the previous week. Local electric furnace steel makers pay 30,500-31,500 yen for H2 grade and the higher price is around 32,000 yen.

Most dealers increased the scrap purchase price due to the increase in electric furnaces’ purchase price and the shipping FAS price from Tokyo bay. The scrap supply to the dealers remains low due to the low scrap generation. Despite the outage by electric furnaces, the scrap inventory would not increase, according to the dealer source.

The dealers’ purchase price around Osaka increased on Monday from 20,500 yen per tonne for H2 grade late last week when some electric furnace steel makers increased the purchase price in the area. Local electric furnaces pay more than 30,000 yen for H2 grade while scrap price increased for integrated steel makers and yard dealers in bay area.

The electric furnaces’ purchase price increased by around 2,500 yen to 30,000 yen per tonne for H2 grade around Nagoya on Monday from last week. Local exporters increased the purchase price wider than local electric furnace steel makers’ increase when the export price increased to around FOB 33,000 yen per tonne.