Osaka based Steel Makers Decreases Ferrous Scrap Purchasing Price

Ferrous scrap purchasing price by Osaka based electric furnace steel makers are decreasing from Wednesday when Himeji based makers decreased the price from Tuesday. The price decreased by about 1% or 250 yen per tonne to 35,000-36,000 yen per tonne for H2 grade from last week and by 9% or about 3,500 yen from the recently highest. Osaka works of Kyoei steel, Nakayama Kogyo, Sakai and Hoshida works of Shinkansai Steel decreased the purchasing price by 500 yen on Tuesday and Osaka works of Godo Steel decreased the price by 500 yen without turning scrap. Each electric furnace steel maker can procure ferrous scrap easily and their inventory is increasing. The makers’ price cut is spreading. Large dealer source said makers would decrease the price even more. Japanese ferrous scrap export price kept lower level at FAS 33,440 yen per tonne for H2 grade in average at a tender held by Kansai Tetsugen on May 29. Dealer source said Japanese makers decreased their purchasing price to close export price. However, overseas ferrous scrap market price seems to hit bottom when Turkey re-started the purchasing from USA. Japanese integrated steel makers re-started the purchasing, too. Ferrous scrap market price around Tokyo is expected to stop down trend.