Japan scrap price started to pick up

Nov. 3 MetalBiz--Traders said that currently Japan's scrap steel export price started to rise, Japan's small steel mills had to adjust up their purchasing price to secure the goods' delivery.

In the metal recycling traders' H2 scrap export inviting bid meeting held at the end of October in Osaka Japan, Japan's scrap steel export price began to increase, at that time, the tender price was 23,150 yen per ton (US $252 per ton, FAS). At the end of last week, South Korea's Dongkuk Steel placed an order for H2 from Japan at the price of 24,000 yen per ton (FOB). One trader stated that Japan's scrap export price may continue soar, but because the current Japan steel production is still low, the export price will not be higher than 25,000 yen per ton.

TokyoSteel recently raised scrap purchasing price by 1,500-2,500 yen per ton, taking effect from October 31, previously its unchanged price is mainly due to the adequate inventory, but with the gradual clearance inventory, it had to adjust the policy.

Presently, TokyoSteel's Okayama mill and Utsunomiya mill increased the delivery price by sea and land of H2 scrap by 2,500 yen per ton to 26,000 yen per ton and 24,000 yen per ton, respectively; Okayama mill raised the delivery price by land of H2 scrap by 1,500 yen per ton to 25,000 yen per ton; Kyushu and Takamatsu mills adjusted up by 2,000 yen per ton to 25,000 yen per ton and 24,500 yen per ton.