Ferrous Scrap Market Price Hits 1-Year Low in Tokyo, Osaka

Ferrous scrap price decreased to less than 30,000 yen per tonne for H2 grade at local electric furnace steel makers’ purchase price in Tokyo and Osaka. The price decreased to less than 30,000 yen for the first time since third week of October 2010. Weak offshore scrap market and lower steel price impacted on domestic scrap price.

Ferrous scrap export price significantly decreased for influential market of Turkey from Europe and USA. Japanese scrap export price is decreasing to less than FOB 30,000 yen per tonne for South Korea.

Local electric furnaces’ purchase price decreased to around 28,500-29,500 yen per tonne for H2 grade around Tokyo on Tuesday. The price is 6,000-8,000 yen lower than the end of September level. Local electric furnaces including Tokyo Steel Manufacturing’ Utsunomiya plant reduced the purchase price through Tuesday.

Local electric furnaces’ purchase price is 28,500-30,000 yen per tonne for H2 grade around Osaka and some makers pay around 30,500 yen. The electric furnaces’ raw steel output in October would be higher than September level. However, one dealer source sees the makers would not increase the scrap purchase when they have built up the inventory.