Strong Ferrous Scrap Market Price in Tokyo

Ferrous scrap market price is in strong tone around Tokyo. The market price dropped from late August to early September while shows a sign to rebound by low shipment volume and high export price. Primary dealer‘s purchase price is around 20,500 yen per tonne for H2 while electric furnace steel makers’ purchase price is 27,000-28,000 yen per tonne, some pay as high as 28,500 yen.

Ferrous scrap export price dropped from Tokyo Bay in the last half of August. Local electric furnaces such as Utsunomiya iron works of Tokyo Steel Manufacturing reduced the purchase price. Electric furnaces’ purchase price decreased by 3,000-4,000 yen per tonne in a week. Dealers reduced the purchase price, too.

The export price rose slightly in the second week of September. Consequently, some electric furnaces increased their purchase price by 500-1,000 yen per tonne to secure enough scrap.

Dealers’ purchase volume continues to decrease due to low yield around Tokyo. A dealer source said electric furnaces raise the purchase price when they need ferrous scrap before long holidays in mid September.

Ferrous scrap export price to Asia is higher than the purchase price of local electric furnaces. The export price increased by 1,000-1,500 yen to around 30,500 yen per tonne from the beginning of this month. Japanese H2 export price is FAS 29,375 yen per tonne for October shipment at averaged successful bid at a monthly export tender held by Kanto Tetsugen on Wednesday.

A dealer source said the domestic market price would rise if higher export price penetrates.