Higher Export Price to Lift Japan Ferrous Scrap Price

Hyundai Steel purchased 27,000 tonnes of ferrous scrap import from Japan in this week, according to Japanese dealer source. The price is around CFR US$ 310 per tonne for H2 grade, US$ 318 for H1 grade and US$ 340 for new cutting scrap. The price is equivalent to FOB 26,000 yen per tonne for H2 grade, which increased by 500 yen from last week and the price is slightly higher than the purchase price by Japanese electric furnace steel makers. One Japanese dealer source sees the higher import price by Hyundai Steel could lift Japanese ferrous scrap market price.

Japanese steel makers’ purchase price is flat at 24,000-25,000 yen per tonne around Tokyo since the beginning of December. The demand for steel products remains low. However, the price has not decreased due to the strong overseas demand. The dealers have order backlog for export to ship scrap until mid-January. The purchase price by Japanese electric furnace steel makers is flat since late November while some makers reduced the price by around 500 yen per tonne.

Ferrous scrap purchase price by electric furnace steel makers around Osaka is flat at 23,500-24,500 yen per tonne for H2 grade, as same in last week. The price decreased in late November. However, the inventory held by dealers decreases in several weeks.