Ferrous Scrap Price Partially Shows Below 30000 Yen/t in Nagoya and Osaka

Japanese ferrous scrap market price has decreased in January and partially represented below 30,000 yen per tonne for H2 around Nagoya and Osaka. Scrap dealers have accelerated inventory shipment along the market price down. Another background is that South Korean scrap importers entered Chinese New Year holidays and new export contracts turned temporarily slow.

Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, implemented ferrous scrap price cut on January 18, 20, and 21. Other electric furnaces followed the price cut around Osaka and Nagoya. On the other hand, most electric furnaces around Tokyo maintained the purchase price. One dealer source indicated ferrous scrap market price might become higher in East Japan than in West Japan.

Around Tokyo, electric furnaces purchase H2 at 30,500-31,500 yen per tonne. Some steel makers reduced the price by 500 yen at the weekend while most makers left the price unchanged. Local steel makers’ scrap consumption seems flat. However, scrap dealers’ shipment is decreasing for West Japan and then dealers tend to increase scrap sales to exporters around Tokyo Bay. Export market price grows stagnant while steel maker’s scrap inventory maintains high. One scrap dealer suggested the market price is edging downward.

Around Nagoya, local steel makers have lowered scrap purchasing price by 3,000 yen for H2 and by 4,000 yen for new cutting scrap since the yearend. The latest purchasing price became below 30,000 yen for H2, the lowest level in two months. Around Osaka, local steel makers pay 29,000-29,500 yen for H2 and some pay as high as 30,000 yen. The market price turned back to the level as low as in early December.