Japan Ferrous Scrap Price Continues to Decrease by 7,000 Yen/t

Japanese ferrous scrap market price continued to decrease. Electric furnace steel makers’ purchasing price has lowered by about 7,000 yen per tonne for H2 grade scrap this month while decreased by over 10,000 yen from the current peak level in April 2011. Overseas ferrous scrap price has declined in October. Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, lowered the purchasing price on October 27, the eleventh price cut within this month. Other electric furnaces followed the price cut. One scrap dealer source said continuous price down of Japanese ferrous scrap is negatively affecting slumber of East Asian ferrous scrap market.

Around Tokyo, electric furnaces pay 28,000-29,000 yen per tonne for H2. Local steel makers including Utsunomiya works of Tokyo Steel decreased the purchase price on October 27. One large scrap dealer pointed out ferrous scrap export price, the indicator, maintains weak. Exporters’ purchase price in Tokyo Bay is below FAS 27,000 yen, lower than the purchase price by local electric steel makers. Local scrap supply is easy when export is inactive and shipment to Western Japan is low.

Around Osaka, electric furnaces purchase H2 at 28,000-29,500 yen and some pay as high as 30,500 yen. Most electric furnaces lowered the purchase price after Tokyo Steel’s price cut.