Japan Steel Scrap Composite Price Rises

Japan Steel Scrap Composite Price, which is averaged purchase price by scrap dealers in Tokyo, Osaka and Nagoya, increased by 400 yen to 20,300 yen per tonne for H2 grade and by 300 yen to 23,600 yen for new cutting scrap in third week of August from previous week. The price is 2,400 yen and 2,300 yen higher than the beginning of the month. Japanese industry interests expect the price would increase more due to higher export price to Asian market.

Electric furnace steel makers’ scrap purchase price is averaged 28,000-29,500 yen per tonne for H2 grade in Tokyo, Osaka and Nagoya. The price of Tokyo Steel Manufacturing and some other makers reached 30,000 yen for the first time since October 2008. The price increases when electric furnace and integrated steel makers increase the consumption and the export price increases.

Electric furnace steel makers around Tokyo try to secure the material at higher price when the export price increases from Tokyo bay. The supply is expected to keep tight for a while due to existing export order while local makers’ consumption decreases under maintenance outage.

The price would increase more in Osaka and Nagoya as well due to firm demand from offshore buyers despite of lower local consumption. Local electric furnace steel makers could increase the purchase price more after mid-August holiday to August 16 when coastal yard dealers increase the purchase price along with tight supply.