Ferrous Scrap Price Decreases around Tokyo

Ferrous scrap purchase price by local electric furnace steel makers decreased by 500-1,000 yen to around 31,000 yen per tonne for H2 on Monday from last week around Tokyo. The price continued decreasing for 2 weeks. The electric furnace steel makers are actively purchasing ferrous scrap due to lower ferrous scrap shipment from Tokyo bay. 2Ferrous scrap export price for new contracts is firm. Makers’ purchase price is unlikely to become downslide under the current situations. Ferrous scrap export from Tokyo bay is slower when scrap price keeps higher in domestic market. Ferrous scrap is flowing into local electric furnace steel makers. Tokyo Steel Manufacturing reduced ferrous scrap purchase price by 1,000 yen per tonne at Utsunomiya works from January 20. Some makers around Tokyo decreased the purchase price following Tokyo Steel Manufacturing. Their recent purchase price is around 30,500-31,000 yen per tonne. Japanese ferrous scrap export price from Tokyo bay exceeded the purchase price by local electric furnace makers. The export price was average FAS 32,183 yen per tonne for H2 for February shipment at tender held by Kanto Tetsugen. Hyundai Steel of South Korea purchased ferrous scrap at around FOB 32,000 yen per tonne for H2 on January 10 which increased by 1,500 yen from the previous tender.