Japan Ferrous Scrap Price to Increase More

Japanese ferrous scrap market price continues increasing due to the firm demand for export to East Asia. Ferrous scrap purchase price by electric furnace steel makers is 29,500-31,500 yen per tonne for H2 grade and higher price is at 32,000 yen, which is 1,000-2,000 yen higher than the level in last week. Domestic scrap price is strong since late July when the export price is increasing and scrap generation is at low level.

Japanese ferrous scrap export price has increased by 500 yen to FOB 32,000 yen pet tonne for H2 grade in last week, which is around 2,000 yen higher than domestic price. Tokyo Steel Manufacturing and other electric furnace steels increase the purchase price on Tuesday.

The purchase price by electric furnace steels around Tokyo was 30,500-31,500 yen per tonne and higher price is around 32,000 yen on Tuesday, which increased by 2,000 yen from last week. Scrap supply to local electric furnace steels is at low level when the generation is low due to the stop of automobile and electronics operation during Japanese holidays in Mid-August.

Purchase price by electric furnace steels around Osaka was around 28,500-31,000 yen per tonne on Tuesday. Most of local electric furnace makers increased the purchase price by 1,000-2,000 yen per tonne until Tuesday, following Tokyo Steel’s hike.

Scrap price is increasing since late July. Scrap supply to local electric furnace steels would decrease more when the trader source expects the dealers build up the inventory when the price turned upward.