TOKYO Japans domestic scrap prices rallied in the last week of September after falling the previous week.
The national average price paid by mini-mills for H2-grade scrap (a mix of No. 1 and No. 2 heavy melt) rose 305 yen ($3) per tonne to 32,951 yen ($335) per tonne, led by an increase of 666 yen ($7) per tonne in the Kanto area around Tokyo, according to the Japan Ferrous Raw Materials Association.
This put prices at the highest level since mid-March. Prices had fallen during the previous week for the first time since early August after Tokyo Steel Manufacturing Co. Ltd. unexpectedly cut its scrap purchase prices (amm.com, Sept. 25).
Meanwhile, export prices have continued to rise, with Hyundai Steel Co. Ltd. last week raising prices for Japanese scrap to above 33,000 yen ($336) per tonne f.a.s.
The steady increase in prices being paid by South Korean mini-mills for Japanese scrap comes despite falling volumes, with the nations imports of Japanese scrap posting a fourth month of year-on-year declines in August to 338,000 tonnes. However, the tally was up 8,000 tonnes from July levels.
A version of this article was first published by AMM sister publication Steel First.