Ferrous Scrap Price Decreases by 500-1,000 yen/t in Osaka

Ferrous scrap market price decreased to 34,000-34,500 yen per tonne for H2 grade around Osaka at local electric furnace steel makers’ purchase price. Tokyo Steel Manufacturing reduced the scrap purchase price by at 3 plants including Okayama plant on Wednesday and local electric furnaces followed the price reduction on the same day. The scrap price decreased to same level around Tokyo for the first time in 5 months.

Electric furnaces around Osaka reduced ferrous scrap purchase price by 500-1,000 yen per tonne depending on grade on Wednesday. The local electric furnaces reduced the purchase price for the first time in 2 weeks.

One scrap dealer source said the dealers’ scrap inventory is decreasing due to low scrap supply. However, the source sees the scrap price would not increase until the steel makers’ scrap inventory decreases.