Ferrous Scrap Price Rises Again in Tokyo

Ferrous scrap purchase price by electric furnace steel makers increased by 2,000 yen per tonne late last week around Tokyo. They pay 42,000-43,500 yen per tonne for H2 and some makers pay as high as 45,000 yen. The price could increase more under tightening supply. The local dealers try to secure the materials under the tight supply. A dealer source said some dealers liquidated the inventory last month and they have limited materials to ship for the local makers. The dealers also ship high grade scrap more for coastal yard around Tokyo bay when the shipping FAS price from Tokyo bay is higher than purchase price by local steel makers. Tokyo Steel Manufacturing’s Utsunomiya plant increased the scrap purchase price by 2,000 yen per tonne on Friday. Local steel makers followed the move. The makers’ purchase price increased by around 5,000 yen from recent bottom in early September. Ferrous scrap market price increased around Osaka as well. After Tokyo Steel’s hike, local electric furnace steel makers around Osaka increased the purchase price by 2,000 yen to around 45,000-46,000 yen per tonne for H2 grade.