Ferrous Scrap Price Enters Adjustment Phase around Tokyo

Ferrous scrap price enters adjustment phase around Tokyo when some of local electric furnace steel makers decreased their purchase price last week. Export shipping is inactive at Tokyo bay and most ferrous scrap is flowing from the market to the makers.There was fewer shipping of ferrous scrap from Tokyo bay after mid September due to bad weathers and the surge of purchasing prices by local electric furnace steels. Ferrous scrap in the market is mostly delivered to the makers under the condition. The makers seemed to receive ferrous scrap more than actual using volume.Some makers decreased the purchasing price slightly then. Local electric furnace steels currently purchase ferrous scrap at around 28,500 yen per tonne for H2 grade. The price stopped the continuous increase since mid August. However, electric furnace steels are entering demand season and integrated steel makers recently procure ferrous scrap more actively than before. The market price is expected not to decrease considerably.