|  | 29/07/2004 |
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Ferrous Scrap Price Recover First 24,000 yen since March
Ferrous scrap market price recovered to level of late March 2004 in Tokyo. The purchase prices by local electric furnace steel makers increased by 7,500 yen or 44.1% to around 24,500 yen per tonne for H2 with 3-6 millimeters of thick compared with the end of June when the price hit bottom in the year. Surging export price to South Korea is said to contribute Japanese domestic price. Japanese integrated steel makers and electric furnaces increase scrap purchase price one after another.
Utsunomiya plant of Tokyo Steel Manufacturing hiked scrap purchase price by 1,000 yen to 27,000 yen per tonne for H2 on Wednesday. Other local steel makers follow the move to increase purchase price lifting the market price to 24,000 yen for the first time in 4 months. They try to secure scrap by increasing price when their scrap arrival is lower than consumption with higher export price.
Scrap shipping price is accelerating pace of increase. Shipping price is FAS 24,500 yen per tonne for domestic vessel and FAS 24,000-2,4300 yen for export from Tokyo bay.
POSCO of South Korea purchased new cutting scrap and HS1 at CIF 33,200 yen at import tender last week. INI Steel bought HS at more than CIF 33,500 yen. They are competing with expanded capacities both for selling products and purchasing raw materials. This purchase competition impacts on Japanese scrap market. A Japanese trader shipping scrap to South Korea said the price increase doesn't reflect actual demand when Korean steel makers have enough scrap inventories. Korean market is likely to make Japanese market volatile.
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 | Ferrous Scrap Price Recover First 24,000 yen since March
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