Ferrous Scrap Price Hits 70,000 yen/t in Tokyo

Ferrous scrap purchase price by electric furnace reached 70,000 yen per tonne for H2 around Tokyo. The price level is 69,500-71,500 yen. The price could increase more when the makers try to build scrap inventory under tight supply preparing for operation during summer vacation. The dealers also ship scrap for integrated steel makers and shipping from Tokyo bay to western Japan and export. Local electric furnaces try to secure the requirement by increasing the purchase price to competitive level. Some makers increased the price in the week and the price level increased by around 29,000 yen per tonne from the beginning of the year.The makers plan seasonal maintenance outage during high electricity summer time while the demand keeps strong from domestic integrated steel makers and makers in other areas and foreign countries. The dealers expect the supply could keep tight even in the slowing operation by local steel makers.Ferrous scrap purchase price by electric furnace steel makers also hit 70,000 yen per tonne for H2 around Himeji, Hyogo. Tokyo Steel Manufacturing increased the purchase price by 1,000 yen per tonne for all grades at all plants on Wednesday. Other local makers followed the move. The price keeps increasing despite of seasonal maintenance period. Yamato Steel, JFE Bars & Shapes, Godo Steel’s Himeji plant and Sanyo Special Steel increased the scrap purchase price by 1,000 yen per tonne. Yamato Steel’s purchase price reached 70,000 yen for H2, which is 6,000 yen higher than the beginning of June, after increases for 4 weeks in a row.