Ferrous Scrap Price Down in Tokyo and Osaka

Ferrous scrap purchasing price by electric furnace steel makers decreased by 500-1,000 yen per tonne in Tokyo and Osaka last week when Japanese ferrous scrap export price is decreasing and the domestic scrap supply maintains easy. The price was 32,500-33,500 yen per tonne for H2 grade around Tokyo on Friday with the highest price at 34,000 yen.Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, reduced the purchase price by 500 yen per tonne for new cutting scrap and by 1,000 yen for the other items at the all iron works effective on Friday. Utsunomiya works’ purchase price decreased to 34,000 yen per tonne for H2 grade.Following Tokyo Steel Manufacturing, other electric furnace steel makers decreased their purchasing prices by 500-1,000 yen per tonne. Their purchasing prices decreased by total 2,500-3,000 yen per tonne from the beginning of May.New export contracts seem to become less at Tokyo Bay due to the decline of the export price. Ferrous scrap supply is expected to keep weak around Tokyo. Dealer source said ferrous scrap purchasing price by electric furnace steels may down more.Ferrous scrap purchasing price by Osaka based electric furnace steel makers decreased by 500-1,000 yen last week. Hyundai Steel’s offer price downed by 3,500 yen to FOB 34,500 yen per tonne for H2 compared with the recent peak. Large dealer source said Japanese ferrous scrap price is still higher than overseas price and is expected to decrease more.Osaka and Hirakata works of Kyoei steel, Osaka works of Godo Steel, Nakayama Kogyo, Sakai and Hoshida works of Shinkansai Steel and Kishiwada Steel decreased the purchasing price by 500 yen on Friday. Their purchasing price decreased to 36,000-37,000 yen per tonne by about 2,500 yen or 6% from the recently highest.Himeji works of JFE Bards & Shapes, Yamato Steel, Himeji works of Godo Steel and Sanyo Special Steel decreased the purchasing price by 1,000 yen per tonne. Yamato Steel’s purchase price became to 35,000 yen per tonne for H2 without freight.