Weak Ferrous Scrap Price in Tokyo

Hyundai Steel of South Korea offered 500 yen per tonne lower price for Japanese ferrous scrap of H2 grade at a weekly tender on Wednesday, which represents the decrease for 2 weeks in a row. The price decreased to around FOB 38,500 yen per tonne by 500 yen for H2, around FOB 44,000 yen for new cutting grade.Ferrous scrap market price is weak at around 34,000 yen per tonne for H2, 36,300 yen for H1 and 38,000 yen for HS at dealers’ purchase price including freight around Tokyo. Local electric furnace steel makers’ purchasing price is 38,500-40,000 yen for H2 and some makers pay as high as 40,500 yen.Dealer source said ferrous scrap price may rise because overseas makers would buy Japanese ferrous scrap if Japanese market price largely decreases. However, the market price around Tokyo is expected to keep weak due to decreasing contracted export price.