Scrap supply decreases recently because scrap generation decreases seasonally in summer and dealers are reluctant to sell now with expectation of higher price. Local steel makers are getting less scrap arrival than they consume. The tight supply forced steel makers to increase scrap purchase price in a month.

Japanese industry interests have mixed views on scrap price. Some expect higher price supported by firm offshore price. Another expects the price levels off. A source said scrap supply increased after Tokyo Steel Manufacturing increased scrap purchase price on Monday.