Japan Ferrous Scrap Price Achieves 40,000 Yen/t

Japanese ferrous scrap market price hit 40,000 yen per tonne for H2 grade for the first time since October 2008. Ferrous scrap export price is rising to East Asia and Japanese integrated steel makers are increasing purchase volume of ferrous scrap. Domestic electric furnace steel makers pay 37,500-39,000 yen for H2 and some pay as high as 40,000 yen.

Electric furnaces around Tokyo pay 37,500-38,500 yen and some pay as high as 39,000 yen. The purchasing price surged by 1,000-2,000 yen from last week. The makers raised the purchase price to accelerate scrap procurement.

Newly contracted export price reached 38,000 yen per tonne for H2. A dealer source explained the export price upped by 1,000 yen but represents lower than the purchase price of local steel makers.

Local electric furnaces around Osaka pay 37,000-38,000 yen for H2. Most electric furnaces didn’t follow Tokyo Steel’s price hike but only JFE Steel, an integrated steel maker, raised the purchase price. Ferrous scrap market price is expected to rise when scrap dealers are increasing the shipment to integrated steel makers.

Integrated steels’ purchase price forms local market price in the region. The market price is over 40,000 yen per tonne for high grade scrap such as HS. A large dealer source said they expect the market price rises more and local electric furnaces’ purchase volume is unstable. Electric furnaces should raise the purchase price more in April.