Weak Ferrous Scrap Price in Tokyo

Ferrous scrap market price is weak at 31,500 yen per tonne for H2 grade scrap at dealers’ purchase price including freight around Tokyo. Local electric furnace steel makers reduced the purchase price by 500-1,000 yen to 36,000-38,000 yen. The price decreases with oversupply due to slower export shipment from Tokyo bay. The makers get smooth scrap arrivals enough to the operations. The dealers try to ship the materials to makers as early as possible when the price decreases and export shipping keeps low level. The export price is FOB 37,000 yen per tonne for H2, which decreased by around 2,500 yen in a month. South Korean buyers shift to US and Russian scrap while they reduce the offer for Japanese scrap. Hyundai Steel reduced the offer price for the first time in 2 weeks. The firm offered C&F 39,300 yen per tonne for Japanese H2 and 44,300 yen for new cutting grade, which decreased by 500 yen from previous week.