Higher Japan Ferrous Scrap Price

Japanese ferrous scrap market price increased for 2 weeks in a row due to firm export price and low level scrap supply. Electric furnace steel makers around Tokyo and Osaka pay 27,000-29,000 yen per tonne for H2 grade, which increased by 500-1,500 yen from previous week. The dealers expect the market price could increase more when export shipping continues for existing orders under tight supply.

Scrap export price increased by 500 yen per tonne for H2 grade last week. The price is FOB 28,000-28,800 yen, which is marginal higher than purchase price by domestic electric furnace steel makers. The domestic makers would increase the purchase price more.

Electric furnace steel makers pay 28,000-29,500 yen per tonne for H2 grade, which increased by 1,500-2,000 yen from previous week level. Scrap supply gets dull in July-September usually due to summer time maintenance outage by electric furnace steel makers. However, the supply is tight and could keep tight for a while due to very low level domestic supply and firm export shipping.

Electric furnace steel makers pay 26,000-28,000 yen per tonne for H2 grade, which is 500-1,000 yen higher than previous week. Tokyo Steel Manufacturing increased the purchase price again and again and Kishiwada Steel and Godo Steel increased the price by 500 yen on Tuesday.

The industry interests expect higher scrap price due to higher purchase price by electric furnace steel makers and higher export price. Some electric furnace steel makers started to build scrap inventory for higher production in and after mid-August when scrap supply gets lower due to major summer vacation by manufacturers in mid-August.