Tokyo Steel Increases Scrap Purchase Price by 1,000 yen/T

Tokyo Steel Manufacturing announced on Monday the firm increases the ferrous scrap purchase price by 1,000 yen per tonne for land and ocean transport to all plants on Tuesday. The revised price for H2 grade is 40,000 yen for Okayama plant, 38,500 yen for Kyushu plant, 37,500 yen for Takamatsu plant, 39,000 yen for Utsunomiya plant and Tahara plant.

Ferrous scrap market price is firm at around 31,500 yen per tonne for H2 grade, 33,300 yen for H1 grade and 35,000 yen for HS grade at the dealers’ purchase price including freight around Tokyo. The local electric furnace steel makers’ purchase price is around 37,000-37,500 yen for H2 grade while the higher price is 39,000 yen.

The price is increasing since mid February. However, market sources see the price increase could slow depending on the export activity. The export price is at FOB 37,000-37,500 yen per tonne from Tokyo bay, which is lower than local makers’ purchase price.