Electric Furnaces’ Ferrous Scrap Buy Price Drops in Tokyo

Ferrous scrap market price decreased for the first time in 5 weeks around Tokyo. The purchase price of ferrous scrap by electric furnace steel makers lowered by 1,000 yen to 16,000-17,000 yen per tonne for H2 grade from last week and some pay as high as 18,000 yen. The price dropped due to the stagnancy of ferrous scrap export and decreasing output of steel products by electric furnaces.

The market price had kept rising tone until the beginning of December from mid November when dealers’ shipping volume was slow and Chinese importers re-started the purchasing of Japanese ferrous scrap. However, export contracts slowed down at the end of November. The ferrous scrap inventory at warehouses in Tokyo bay is increasing. The export price dropped at the end of last week. Some Japanese exporters stopped the acceptance of ferrous scrap.

Consequently, dealers are shipping more scrap to electric furnace steel makers around Tokyo. But the supply and demand got loose gradually when electric furnaces are reducing the output. Steel makers are reducing the purchase price of ferrous scrap this week. Some makers are scanting the purchase volume. A dealer source said the demand for ferrous scrap becomes unwell.