Japan Ferrous Scrap Price Hits Year-Low

Japanese electric furnace steel makers’ ferrous scrap purchase price decreased by 500-1,000 yen per tonne hitting the lowest level in the year. The price decreases when US export price decreased for Turkey and South Korean steel makers hold the order under lower won rate. A dealer source said Taiwanese steel makers also hold the order when they expect lower price and international slow market impacts on Asian transactions.

Electric furnace steel makers pay 33,000-35,000 yen per tonne for H2 grade scrap around Tokyo. The price decreased by 2,500 yen since recent peak in mid-September. Tokyo Steel Manufacturing’s Utsunomiya plant and other local makers reduced the purchase price by 1,000 yen on Thursday.

Scrap shipping from Tokyo is slow to western Japan and East Asian buyers. A trading firm source said the shipping to South Korea continues for existing order but new order is very slow. Scrap shipping price is FAS 33,000 yen per tonne from Tokyo bay and could decrease more.

Electric furnace steel makers pay 33,500-34,000 yen per tonne for H2 grade scrap around Osaka. Local makers around Osaka and Himeji reduced the purchase price by 500 yen on Thursday as Tokyo Steel. Their purchase price decreased to less than 34,000 yen, which is lower than year-low in late August. A dealer source said the interests expect lower price partly due to major drop in nonferrous metals scrap price.