Japan: Nagoya region witnesses a JPY 500/t rise in ferrous scrap prices

The steel scrap market in Japan has seen a notable increase of JPY 500/t, with H2 prices ranging from JPY 35,500/t to JPY 36,500/t. Despite this upward trend, overseas demand for Japanese scrap remains subdued, suggesting the market may not sustain further increases.

Projections for this month's crude steel production in district electric furnaces indicate a potential decrease compared to November. While the return of exported raw materials to the region has eased the urgency for district electric furnace procurement, a significant number of electric furnaces, primarily from dismantling activities, are contributing to supply.

The approaching year-end and New Year holidays are expected to lead to a temporary suspension of operations in the manufacturing industry. In anticipation of a future decrease in processing scrap, sources suggest that lowering the purchase price of electric arc furnaces may pose challenges.

On the global front, exports from Europe and the United States to Turkey have surged, and U.S. offers to Asia have also risen in price. Despite expectations of initial bids exceeding JPY 52,000/t, the exchange rate's swing in favor of yen appreciation on the bidding day has tempered the increase.

Notably, Totetsu, maintaining an anti-export stance, raised the purchase price by JPY 500 across all products at all bases. Other manufacturers followed suit, citing decreased received goods before bidding due to overseas prices. The association shipped 15,000 tons by the 13th and continued with 3,000 tons from the 19th to 21st, contributing to tightening supply and demand in the district.

As of the 11th, the Gulf price (H2) reached a high of JPY 50,500/t. While shippers exercise caution due to deteriorating export profitability, a perceived market shortage compels them to raise purchase prices to secure the necessary quantity.

Note: This article has been published in accordance with an article exchange agreement between Japan Metal Daily and SteelMint.