Japan Ferrous Scrap Price Rises due to Higher Offshore Market

Japanese electric furnace steel makers’ ferrous scrap purchase price increased by 1,000-2,000 yen to near 20,000 yen per tonne for H2 grade last week. Tokyo Steel Manufacturing increased the scrap purchase price with higher scrap export price to East Asia. The domestic scrap price could increase under tight supply.

The scrap export price from Tokyo bay to FOB 22,000-23,000 yen per tonne for H2 grade, which is 2,000 yen higher than domestic market. The appetite increases from South Korea and Taiwan while the demand decreases from China.

The electric furnace steel makers’ scrap purchase price increased by 1,000-2,000 yen to 18,500-19,500 yen for H2 around Tokyo. Some makers pay more than 20,000 yen.

Higher appetite from Asian buyers reduces the scrap shipment to local steel makers around Tokyo. Local steel makers including Tokyo Steel raised the scrap purchase price by 1,000 yen per tonne on Saturday.