Electric Furnaces Reduces Ferrous Scrap Purchase Price in Tokyo

The purchase price of ferrous scrap by electric furnace steel makers lowered by 500-1,000 yen to 15,500-16,500 yen per tonne for H2 grade from last week and some pay as high as 17,000 yen. The price dropped when the demand for ferrous scrap is reducing due to makers’ output cut.

The demand for steel products is getting worth. Large dealer source said the order for ferrous scrap is dropping from electric furnace makers or casting makers. The supply ad demand for ferrous scrap is loosing when some electric furnace makers restrict the arrival of ferrous scrap around Tokyo.

Utsunomiya works of Tokyo Steel Manufacturing reduced the purchase price to 17,000 yen per tonne by 500 yen for H2 grade in December 13. Other electric furnace makers decreased the price by 500-1,000 yen per tonne, too.

Dealer source said makers’ purchase price may drop in near future when the supply and demand isn’t expected to become tight.