Japan Electric Furnace Steels Pay 500-1,000 yen/T More for Scrap

Japanese electric furnace steel makers increased the ferrous scrap purchase price by 500-1,000 yen per tonne in Tokyo and Osaka in the week. The makers increase the products price to make a profit. However, ferrous scrap price is expected to increase more due to the purchase by integrated steel makers and increasing export price to East Asia.

The electric furnace makers around Tokyo increased ferrous scrap purchase price by 500-1,000 yen to 30,500-31,500 yen per tonne for H2 grade from Wednesday arrival. Some makers pay around 32,000 yen. The price is 5,000-6,000 yen higher than the level in the beginning of the year.

The purchase price by electric furnaces increased by around 1,000 yen to 30,500-32,000 yen per tonne around Osaka, which increased by 3,000 yen from the beginning of February.

The price would continue increasing due to the firm demand for export and tight scrap supply, according to a dealer source.