Japan Ferrous Scrap Rises by 100 Yen/t for H2

Japanese ferrous scrap composite market price, which is the average price around Tokyo, Osaka and Nagoya based on Japan Metal Bulletin’s survey, rebounded by 100 yen and reached 19,900 yen per tonne for H2 grade on Friday. The price upped by 200 yen to 23,800 yen per tonne for new cutting scrap. The price surged by US$ 1.08 to US$ 214.83 per tonne for H2 and by US$ 2.16 to US$ 256.94 for new cutting scrap.

Japanese electric furnace steel makers keep slow procurement of ferrous scrap when scrap dealers’ shipment stays low in all Japan. Electric furnaces around Osaka raised their purchase price to secure scrap last week and the market price rose.

In Tokyo, the market price keeps flat from last week though a few makers raised the purchase price. Scrap dealers cautiously set the purchase price unchanged. Dealers’ scrap export successful bid around Tokyo on Wednesday was higher than the purchase price of local electric furnaces. A dealer source said the export price is expected to impact the domestic market price.

In Osaka, some makers raised the purchase price thanks to high scrap export successful bid. However, dealers keep wait-and-see stances when Okayama iron works of Tokyo Steel Manufacturing didn’t change the purchase price and the export price keeps flat from Osaka Bay. High ferrous scrap export and low shipment volume pulled up the market price.

In Osaka, the market price surged for the first time in 3 weeks. The market price is stable for high grade scrap when Japanese integrated steel makers increased the purchase volume. But a dealer source said they should carefully watch electric furnaces’ price policies.