Japan Ferrous Scrap Price Hits Bottom

Japanese ferrous scrap market price hit the bottom when export price is rising to South Korea. Hyundai Steel’ offer price increased to FOB 29,000 yen per tonne by about 2,000 yen for H2 grade. On the other hand, large dealer said domestic large dealers offer by 500-1,000 yen. Large dealer source said price level changes by construction volume. Domestic ferrous scrap price has been decreased since long holiday in May, but the price is likely to rise thanks to rising export price.

Ferrous scrap market price is 28,000-29,000 yen and some pay as high as 29,500 yen around Toyo. The market price is 27,000-28,000 yen around Osaka. The demand for ferrous scrap is expected to decrease when electric furnace makers carry out scheduled refinement after the last half of August. Large dealer sourced said international ferrous scrap market price is high level, and the supply and demand for the balance becomes tight if the export increased to South Korea and Taiwan.

Ferrous scrap demand is firm for Japanese integrates steel makers and specula steel makers. New cutting scrap price is expected to rise when export price is increasing to South Korea. POSCO Special Steel offered at around FOB 37,500 yen per tonne on Thursday and Hyundai Steel offered at around FOB 36,000 yen on Friday, according to large dealer source. These prices are higher than domestic market price.