Ferrous Scrap Plunges by 10,000 y/t in A Week, Japan

Ferrous scrap market price decreased by 10,000 yen per tonne within October around Tokyo and Osaka, which hit the yearly lowest. Backgrounds are that overseas ferrous scrap market price declined mainly in USA and that Japanese electric furnace steel makers implement output reductions due to weak demand.

The market price decreased by 5,000 yen to 33,000-34,000 yen per tonne for H2 grade on Tuesday around Tokyo and some pay as high as 35,000 yen. Utsunomiya works of Tokyo Steel Manufacturing reduced the purchase price of ferrous scrap by 5,000 yen to 35,000 yen per tonne for H2 on Tuesday. Other makers also decreased the purchase price following Tokyo Steel Manufacturing.

Overseas steel makers stopped importing Japanese ferrous scrap from early September because of comparatively high price of Japanese ferrous scrap. Japanese exporters decreased the export price and reduced award volume at Tokyo Bay.

A dealer source said ferrous scrap market price may decrease as rapidly as summer when domestic scrap supply is loosing.

The market priced fell to below 40,000 yen per tonne for H2 grade around Osaka for the first time since November 2007. The purchasing price of local electric furnaces decreased to 35,000-36,000 yen per tonne for H2. A dealer source apprehends the market price may drop to below 30,000 yen per tonne.

Electric furnace steel makers around Osaka reduced the purchase price by 5,000 yen per tonne on Tuesday following Tokyo Steel Manufacturing. The market price decreased by 12,000 yen per tonne for one week around Osaka and by 10,000 yen around Himeji.