Japan Electric Furnace Steels Raise Ferrous Scrap Purchase Price

Japanese electric furnace steel makers increased the ferrous scrap purchase price to 29,000-30,500 yen per tonne for H2. The makers around Tokyo increased the price by 1,000 yen on Wednesday while the makers around Himeji area in Hyogo increased the price for the first time in a month. They try to secure scrap at higher price when domestic scrap generation is still low.

The makers around Tokyo pay 28,500-29,500 yen per tonne for H2 and the price is as high as 30,000 yen. Tokyo Steel Manufacturing’s Utsunomiya plant increased the price by 1,000 yen on Wednesday and other makers followed the move. Their purchase price increased by 1,000-2,000 yen from the beginning of the month.

The scrap dealers around Tokyo try to secure scrap under very low level generation. A dealer source said the local supply is still tight when the dealers ship scrap for coastal yards for export and shipment for other areas.

The electric furnace steel makers around Himeji increased the scrap purchase price to 29,500-31,500 yen per tonne for H2, which is the first increase since mid-August, after Tokyo Steel’s increase on Wednesday.

The makers around Osaka keep the purchase price while the makers around Himeji including Godo Steel’s Himeji plant, Sanyo Special Steel, Yamato Steel and JFE Bars & Shapes’ Himeji plant increased the price by 1,000 yen. Yamato Steel’s purchase price reached 29,500 yen for H2 with additional 500 yen for scrap from other areas.