The ferrous scrap purchase prices by the electric furnace steel makers in the Tokyo area bottom out for the first time in 2 months. The H2 prices are 22,000 yen per tonne as a center value and 23,500 yen per tonne as a higher price. The price dropped around 2,000 yen per tonne or 8% from the higher price in December 2005. However, the ferrous scrap export price shifted to increase because offshore steel makers started the purchasing from the latter half of January. So the steel makers in the area reinforce their wait-and-see stances toward the prices.After the purchase prices by the steel makers in the area became 25,000-25,500 yen per tonne which were the higher prices hit in the beginning of December 2005, they continued to decrease by 500 yen per tonne by January because the steel makers, who feared steel product markets’ declining, strengthened production adjustments.Moreover, the overseas steel makers resorted to the significant reduced output since the steel product market price in Asia. Consequently, the purchase volume from Japan and the U.S. dropped. The export price from Japan continued to decline.Overseas steel makers in South Korea and Taiwan, etc. restarted to purchase Japan’s ferrous scrap from the latter half of January. The export prices (H2) for shipping in Tokyo Bay were 22,500-23,000 yen per tonne for FAS, up 1,500 yen per tonne from the previous month. The steel makers in the Tokyo area are unchanging the purchase prices to consider decrease of the arrival. There is some possibility that the steel makers will raise the purchase prices as the purchase and export prices are the same levels.
Japan Steel Scrap Composite Prices (Sangyo Press)12/01/2022
|46600YEN (-200)||47800YEN (-100)|
|337.46US$ (2.86)||346.15US$ (3.69)|
* Average of electric furnaces steel maker's purchasing price in Tokyo, Osaka and Nagoya (per ton)