Peaking Japan Ferrous Scrap Price

Japanese ferrous scrap market price is peaking recently. Japanese industry interests concern the export for East Asia, which lifted domestic market price, when the buyers in China and South Korea could reduce higher priced Japanese scrap while the domestic demand improves due to restarting purchase by integrated steel makers and higher consumption by electric furnace steel makers.

Electric furnace steel makers around Tokyo pay 24,500-26,000 yen per tonne for H2 scrap on Friday, which is flat as previous week. Tokyo Steel Manufacturing increased the purchase price twice in July. The export price from Tokyo bay rebounded due to Tokyo Steel’s move and Hyundai Steel’s purchase. However, other local steel makers around Tokyo keep the purchase price.

Electric furnace steel makers around Osaka pay 24,500-25,500 yen per tonne for H2. Many makers kept the price level while some makers followed Tokyo Steel’s move. A dealer source said the makers could increase the purchase price and purchase scrap at spot basis when the supply is very low level due to relative lower market price than other areas. However, the price could peak when makers’ summer maintenance outage would be longer than usual year.