Japanese Domestic Ferrous Scrap Price Hits Highest since Bottom in 2008

Ferrous scrap purchasing price by Japanese electric furnace steel makers hit the highest since the bottom in 2008. The price increased by 1,000 yen to 31,500-33,000 yen per tonne for H2 grade from last week. Japanese integrated steel makers increased scrap procurement while ferrous scrap export expanded despite of low generation in domestic market.

Electric furnace steel makers around Tokyo pay 31,500-32,500 yen for H2 and some pay as high as 33,000 yen. Active export pulls up the purchase price.

Ferrous scrap export price from Tokyo Bay is higher than the electric furnaces’ purchasing price. Scrap dealers’ inventory keeps low. Some electric furnaces are increasing spot procurement to secure enough materials.

Electric furnaces around Osaka pay 31,500-33,000 yen per tonne for H2 grade, higher by 1,000 yen than last week. The price surged by about 4,000 yen or 14% compared with February. Some makers continue spot purchasing at higher price than market price to secure the volume.

A scrap dealer source said dealers’ purchase price is higher than makers’ purchase price. Dealers around Osaka Bay continue aggressive scrap collection not for local electric furnaces but for export or domestic integrated steel makers.

Ferrous scrap market price rose by 7,000-8,000 yen per tonne from the beginning of this year due to active export and low generation. New export contracts are slowing down after Chinese New Year holidays. A dealer source said it is unclear whether ferrous scrap price keeps uptrend.