Japan Ferrous Scrap Price Rebounds

Japanese ferrous scrap market price turned into increase when Chinese and offshore buyers’ bid is higher than domestic market price. Japanese electric furnace steel makers increased the scrap purchase price by 500-1,000 yen to 22,000-23,500 yen per tonne around Tokyo and Osaka in the week. Japanese scrap industry interests expect the price could increase more depending on the export transaction.

Chinese buyers restarted purchase of Japanese scrap. The export price to China is around FOB 23,500 yen per tonne for H2 while the export to South Korea is 23,500-24,000 yen. The export price could increase more when US scrap export price increases to C&F US$ 260 per tonne level.

Japanese electric furnace steel makers increased the scrap purchase price for the first time in a month around Tokyo to secure the material under competition with the export. Osaka’s makers also increase the price under the scrap market recovery sentiment.

Japanese scrap interests expect local steel makers could increase the scrap purchase price more when the price level is lower than the export price and purchase price by integrated steel makers. The electric furnace steel makers are likely to secure the requirement by adjusting the purchase price.