Weak Ferrous Scrap Market Price in Tokyo, Osaka

Ferrous scrap market price is weakening around Tokyo and around Osaka. In Tokyo area, the market price is around 19,500 yen per tonne for H2 grade, 21,300 yen for H1 grade and 23,000 yen for HS grade at the dealers’ purchasing price including freight. Local steel makers pay 26,000-27,000 yen per tonne for H2 grde. In Osaka area, dealers’ purchasing price is around 18,500 yen for H2 grade. Local electric furnace steel makers pay 26,500-27,500 yen for H2 grade and some pay as high as 28,500 yen.

Tokyo Steel Manufacturing, Japan’s largest electric furnace steel maker, lowered its scrap purchasing price by 500 yen per tonne on November 5. Other steel makers around Tokyo and Osaka followed the price cut. Electric furnaces in Osaka and Himeji area lowered their purchasing prices by 500-1,000 yen.

Ferrous scrap export price is also decreasing at Tokyo. In Osaka, newly contracted export price to South Korea continued lowering. One scrap dealer around Tokyo said steel makers cannot increase scrap procurement when steel product prices are also weakening. Another scrap dealer around Osaka said regional supply and demand balance maintains loose except for normal grade heavy scrap. Market price is likely to keep downtrend for a while.