Japanese Ferrous Scrap Market Price Continues Surging for 7 Weeks

Ferrous scrap market price continues increasing for 7 weeks in Japan. Domestic steel makers’ purchasing price is around 35,500-37,000 yen per tonne for H2 delivered to the makers’ plants including freight, higher by 2,000-3,000 yen from last week. Some pay as high as 38,000 yen. Japanese electric furnace steel makers are raising the purchase price when domestic integrated steel makers are increasing scrap procurement from the market dealers and South Korean importers restarted new dealing negotiations with Japanese scrap shippers.

Around Tokyo, local electric furnaces purchase H2 at 36,000-36,500 yen per tonne and some pay as high as 37,000 yen. Tokyo Steel Manufacturing and other electric furnaces in the area raised their purchasing price by 1,500 yen per tonne on Wednesday. The price has risen by 4,000-5,000 yen since the beginning of March.

In Nagoya area, steel makers’ purchasing price is around 34,000 yen per tonne for H2. Tokyo Steel’s Tahara works raised the price to 37,000 yen for H2 on Wednesday. Scrap exporters pay around 35,000 yen for H2.

Around Osaka, four electric furnaces in Himeji area followed Tokyo Steel’s price hike this week. Yamato Steel, Himeji plant of JFE Bars & Shapes and Himeji plant of Godo Steel raised their purchasing prices by 1,000 yen while Sanyo Special Steel increased the price by 1,500 yen on Wednesday. Yamato Steel’s H2 purchasing price reached 37,500 yen per tonne.

In Osaka, Kishiwada Steel and Godo Steel’s Osaka plant raised the price by 1,000 yen and Osaka Steel increased the price by 2,000-2,500 yen on Thursday. Other electric furnaces are also following the hike.