Lower Export Price to Slow Japan Ferrous Scrap Price Rise

Japanese ferrous scrap price is likely to increase to 40,000 yen per tonne at the electric furnace steel makers’ purchase price. The price is increasing since February due to the export demand and the purchase by blast furnaces. On the other hand, the domestic market price is higher than the export. The domestic price increase could slow depending on export activity, according to dealer sources.

Ferrous scrap price is 37,000-37,500 yen per tonne for H2 grade at the electric furnaces’ purchase price around Tokyo and some makers pay around 38,000 yen after Tokyo Steel Manufacturing and other local makers increased the price by 1,000 yen on Wednesday. The export price is FOB 37,000-37,500 to East Asia.

Electric furnaces around Osaka pay 36,500-38,000 yen per tonne for H2 grade and some makers’ purchase price is higher. The price increased by 1,500 yen this week and the price increased by 32% or 9,000 yen since the beginning of February.