Dropping Ferrous Scrap Price in Tokyo, Osaka

Ferrous scrap price down accelerates in Tokyo and Osaka. The price decreased by around 19,000 yen per tonne for H2 in Tokyo and by around 22,000 yen in Osaka in the month. With slower demand at home and abroad, the price could decrease to less than 20,000 yen. Electric furnace steel makers could reduce the output and selling price under slower demand.

Electric furnace steel makers reduced the scrap purchase price by 2,000 yen to 24,500-27,000 yen per tonne on Wednesday. The local supply gets easy when the makers reduce the purchase under lower consumption along with slower scrap export. The local makers are expected to decrease the scrap price to less than 20,000 yen when FAS price from Tokyo bay already decreased to less than 20,000 yen.

Ferrous scrap market in Osaka also increases uncertainty. Local makers reduce the purchase volume accelerating the local oversupply. Local traders expect the makers could reduce the output level more in and after November when they try to keep the selling price under slower demand.