Utsunomiya plant of Tokyo Steel Manufacturing, the major electric furnace maker, had increased the ferrous scrap purchase price by 2,500 yen per tonne and to 29,500 yen per tonne for the best grade on August 3. The other electric furnace steel makers also decided it by the same price increase. The market price became 28,000-yen-mark per tonne, the highest price since January 1981. This June, both the export prices of the ferrous scrap of the U.S. and Japan rose because the overseas steel makers started their purchasing ferrous scrap, and the purchase price of the electric furnace steel makers in the Tokyo area rose suddenly by 10,000 yen per tonne or more by about one month and a half.

But, the prices of the Asian ferrous scrap markets are expected to fall because unusual purchase movements mainly by South Korean makers took a rest. Raw material purchase by POSCO and INI Steel in South Korea became quiet because of feelings of high prices for ferrous scrap being gained power to the steel makers in South Korea and Taiwan. The bid prices by them already declined, and the loading prices from Japan are also likely to have their weak tone.

Moreover, electric power uneasiness in China has been serious since last year. Electric power supply is sharply cut by 30-40% on the average. The electric furnace steel makers' rate of operation is falling in the country. Some trading company says that ferrous scrap export price to China from Japan will fall to around 270 dollars per tonne for C&F for H2. From now on, there is a possibility that the Asian ferrous scrap market will become weak.