Strong Ferrous Scrap Price around Osaka

Ferrous scrap market price is strong around Osaka with active export bound for East Asia despite of slow demand from local electric furnaces and integrated steels. The supply and demand balance becomes tight thanks to the export. High export price is pulling up the local market price, too.

Electric furnace steel makers around Osaka purchase ferrous scrap at 18,500-20,000 yen per tonne for H2 grade and some pay as high as 21,000 yen. The price turned upward in April.

Ferrous scrap export price is FOB 22,500-23,000 yen per tonne for H2 to South Korea, higher than domestic market price. US ferrous scrap export restarted from East Coast to Turkey, which may make a positive impact on Asian ferrous scrap market price.

Domestic market price is rising around Osaka but surging speed is slower than export price for South Korea when Japanese electric furnaces and integrated steels continue low operations. Their iron works have a lot of ferrous scrap inventories. Electric furnaces in the region are reducing the output by around 50% from a year earlier.

A dealer source said they can’t collect ferrous scrap unless they raise purchasing price as high as the export price level. New export contracts are increasing and, that is, the export is expected to maintain active until June all around Japan.