TOKYO The rally in the
Japanese scrap market is gaining momentum, with Tokyo Steel
Manufacturing Co. Ltd. boosting its purchase prices for a third
time within a week following a sizable jump in export
electric-arc furnace operator and effective benchmark
price-setter increased its buying prices by 500 yen ($6)
As a result, it is now paying
24,500 yen ($305) per tonne for deliveries to its
Utsunomiya Works; 24,000 yen ($299) per tonne for seaborne
deliveries to its Okayama plant; 23,500 yen ($293) per
tonne for overland deliveries to the plant, as well as all
deliveries to its Kyushu and Tahara Works; and 22,500
yen ($280) per tonne for deliveries to its Takamatsu
The latest hike follows an
across-the-board increase of 500 yen per tonne over the weekend
in reaction to last Fridays export tender by scrap
dealers in the Tokyo area, which saw their prices shoot up more
than 13 percent from levels seen the prior month.
The average winning bid at the
tender came in at 25,643 yen ($319) per tonne f.a.s.
The increase pushed export
prices far above the domestic market, leading market observers
to predict that it was only a matter of time before local
mini-mills responded with further increases in their purchase
prices, they told AMM sister publication Steel
On the other hand, volatility
could be in store for scrap pricing as the market struggles to
balance weak demand and rising export prices.
A version of this article was first published by AMM
sister publication Steel First.