Japan Ferrous Scrap Price Declines Slightly

Japanese ferrous scrap market price declined slightly for the first time in one month and half when ferrous scrap export price decreased to South Korea. Tokyo Steel Manufacturing, Japanese large electric furnace steel maker, reduced the purchase price of ferrous scrap in all works, and other electric furnace steel makers decreased the purchase price around Tokyo and Osaka.

The purchase price by local electric furnace steel makers is 35,000-36,000 yen for H2 grade around Tokyo and some pay as high as 37,000 yen. They reduced the purchase price by 500 yen per tonne from Friday including to Utsunomiya works of Tokyo Steel Manufacturing.

Export price hovers at low level. Shipping volume is low to western Japan. Dealers’ purchase price decreased by 500-1,000 yen per tonne to FASS 34,500 yen for H2 in Tokyo bay.

The amount of emergence for ferrous scrap is low around Tokyo. One dealer source said the supply and demand balance or the market price of ferrous scrap is maintained when the amount of shipping of ferrous scrap is decreasing from northern Japan after September.

South Korean steel makers’ offer is low. They don’t buy Japanese ferrous scrap unless low price. Export price of ferrous scrap is lower than the purchase price by local steel makers.

The purchase price by local electric furnace steel makers is 34,500-35,000 yen per tonne for H2 around Osaka and some pay as high as 35,500 yen. Osaka Steel, Kyoei Steel, Nakayama Steel Products, Yamato Steel and Himeji works of JFE Bards & Shapes reduced the purchase price from Friday when Tokyo Steel Manufacturing decreased the purchase price.