Japan Scrap Composite Hits First Rise in 2 Months

Japan Steel Scrap Composite Prices on Friday increased for the first time in near 2 months due to rebound of the market price in Osaka while the price kept low in Tokyo and Nagoya. The price increased by 300 yen to 21,400 yen per tonne for H2 grade and by 400 yen to 26,000 yen for new cutting scrap in 4th week of June from previous week. The price was US$ 235.97 per tonne for H2 and US$ 286.69 for new cutting scrap at 90.69 yen per US dollar at telegraphic transfer selling rate.

The dealers’ purchase price was flat at around 24,000 yen per tonne for H2 around Tokyo in 4th week of June from previous week. The dealers kept the purchase price with no major movement in purchase price by local electric furnace steel makers. The makers’ purchase price was 29,000-30,500 yen for H2 grade. The dealers expect the price could increase despite no additional factor for the scrap demand around Tokyo. A dealer said scrap shipping to Osaka area could increase with wider price gap with Osaka’s price and Tokyo’s supply could tighten after scrap price rebounded in Osaka.

The dealers’ purchase price increased by 1,000 yen to 22,500 yen per tonne for H2 grade around Osaka in 4thweek of June from previous week. The dealers increased the purchase price after local electric furnace steel makers increased the scrap purchase price. The makers increased the scrap purchase price to 29,500-31,000 yen for H2 grade, which recovered 30,000 yen level. The makers’ purchase price increased for the first time in near 2 months due to strong demand by integrated and special steel makers while scrap market price was flat in Tokyo and Nagoya.

The electric furnace steel makers’ scrap purchase price was around 32,500-33,000 yen per tonne for new cutting scrap and 28,000-29,000 yen for H2 scrap around Nagoya. Tokyo Steel Manufacturing’s Tahara plant reduced the scrap purchase price on Saturday, which was the first increase in around 2 weeks when the maker got sufficient scrap arrivals due to higher local makers’ purchase price, especially for heavy melting scrap than price level of other areas’ makers. Other makers didn’t follow the move and the market is expected to hold the level at least until next scrap tender.

Japan Steel Scrap Composite Prices is averaged dealers’ scrap purchase price in Tokyo, Osaka and Nagoya, which was reported by Japan Metal Bulletin.