Japan Ferrous Scrap Market Price May Level Off

Japanese ferrous scrap market price reached 23,500-26,000 yen per tonne for H2 grade, increasing for 3 consecutive weeks. On the other hand, the market price is unforeseeable whether to rise or drop when some electric furnace steel makers around Tokyo and Osaka offer higher scrap purchasing price than the export price to Asia. In addition, domestic market price of rebar and H-beam is weakening. A large dealer source said scrap purchasing price by electric furnaces may level off.

Ferrous scrap export price keeps flat at around FOB 25,500 yen per tonne for H2 grade to China from last week. South Korean importers currently contracted ferrous scrap of about 70,000 tonnes at US$ 271-272 per tonne (about 26,000 yen) for A3 grade with Russian exporter, seeking cheaper ferrous scrap than international price. Japanese ferrous scrap export to South Korea may decrease.

Electric furnaces around Tokyo are purchasing H2 at 24,000-25,500 yen per tonne, up by 500-1,000 yen from last week. Some pay as high as 26,000 yen. A dealer source said ferrous scrap price could hit the ceiling. Meanwhile, the market price is unlikely to drop rapidly when export continues from Tokyo Bay.

Electric furnaces around Osaka are purchasing H2 at 23,500-25,000 yen per tonne. Some makers increased the price when Tokyo Steel Manufacturing raised the purchase price on Friday. Kishiwada Steel raised the price by 1,000-2,000 yen per tonne on Tuesday. Their purchase price hit the yearly highest. A large dealer source said ferrous scrap price isn’t expected to rise when new contracted export price is likely to fall below domestic market around Osaka.