Japan Ferrous Scrap Price Shows Sign to Peak

Ferrous scrap market price increase is tone down around Tokyo. The export price from Tokyo bay peaks while local electric furnace steel makers get scrap arrival enough to the consumption. However, the price could be supported by higher demand toward a week long holiday in early May. Local steel makers pay 35,000-36,000 yen per tonne for ferrous scrap and some pay as high as 37,500 yen. The price increased by around 7,000 yen in 2 months. However, the local makers get sufficient scrap arrivals when the export shipment is slow from Tokyo bay. Tokyo Steel Manufacturing increased the scrap purchase price by 1,000 yen per tonne effective on April 6 but the price is expected not to increase much more. Scrap export price from Tokyo bay is expected to decrease. Hyundai Steel of South Korea kept the scrap purchase price from Japan. The firm reduced the offer price by 500 yen to FOB 37,500 yen per tonne for May shipment though the firm offered 38,000 yen for April shipment.