Japan tags jump 60% after Nov. slide

Dec 10, 2008 | 09:43 AM |

Japanese ferrous scrap prices have risen about 60 percent after hitting bottom last month, but there are signs the rally is running out of steam fast as finished steel product prices continue to fall.

Scrap prices have shot up in recent weeks as Tokyo Steel Manufacturing Co. Ltd., Japan's largest electric furnace operator and effective price benchmarker, raised its purchase price on the back of a strong rally in export prices.

The average national price for delivered H2 grade scrap, equivalent to No. 2 heavy melting steel scrap in the United States, stood at 15,715 yen ($170) per tonne at the end of last week, with prices in the Tokyo area running as high as 18,833 yen ($198) per tonne, according to the Japan Ferrous Raw Materials Association (JFRMA). This is up from an average of just 9,538 yen ($100) per tonne three weeks earlier.....