Ferrous Scrap Price Keeps Weak in Tokyo

Ferrous scrap price keeps weak in Tokyo since late 2004 under easy supply. The price is around 14,000 yen per tonne for H2 grade and around 18,000 yen for HS grade at purchase price including freight by dealers, who process and supply ferrous scrap to electric furnace steel makers. The dealers’ shipment decreases when Japanese electric furnaces stopped their operation for about a week during the year-end and New Year holidays and when ferrous scrap export keeps slow since autumn. Local dealers are gradually reducing their purchase prices.The market price decreases gradually by 500 yen per tonne after the export price of ferrous scrap dropped, though the market price was 15,500 yen per tonne for H2 in November 2005. Asian steel makers, especially Chinese makers, are reducing ferrous scrap imports.The price is weakening to 22,000-22,500 yen per tonne for H2 at local electric furnaces’ purchase price in Tokyo. The highest is 23,500 yen. The ferrous scrap export price also decreases to FAS 21,500-21,800 yen per tonne for H2 at Tokyo bay. The market price could keep weak without positive factor in both domestic and overseas markets.