Ferrous Scrap Price Drops after 2 Months, Tokyo

Electric furnace steel makers around Tokyo reduced their ferrous scrap purchasing price for the first time in 2 months, when the makers continue output reductions and new export contacts are stagnant. The latest price is 19,000-21,000 yen per tonne for H2 grade and some pay as low as below 20,000 yen.

The demand for ferrous scrap is decreasing due to makers’ output cut. Higher export price had supported domestic market price. However, overseas importers stopped new orders when Japanese ferrous scrap price became higher this month.

Japanese exporters are regulating scrap receipts or reducing exporting price. Export price became to the level as low as local electric furnaces’ purchasing price. Consequently, domestic dealers are shipping ferrous scrap to domestic makers. A dealer source said the supply and demand became loose slightly around Tokyo though ferrous scrap generation is low.

Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, decreased the purchase price by 1,000 yen per tonne on Tuesday. Other makers reduced the price, too. A dealer source said ferrous scrap market price is unlikely to drop rapidly with export contract rest and low scrap generation.