Ferrous Scrap Price Continues Drop in Tokyo

Ferrous scrap market price slightly decreased around Tokyo. The price is 29,000-30,000 yen per tonne for H2 grade at local electric furnace steel makers’ purchase while some makers pay around 30,500 yen. Tokyo Steel Manufacturing reduced scrap purchase price by 500 yen at Utsunomiya plant on Saturday and most of local makers reduced the price by 500-1,000 yen by Monday. The price is around 2,500 yen lower than the price in the beginning of January.

Local dealer source sees ferrous scrap oversupply compared with the demand around Tokyo. The supply is stable for local electric furnaces but the shipping slows for export and western Japan. The source sees the dealers apparently increased the supply for local electric furnaces under expectation for price decrease.

Japanese industry source sees the scrap export price would increase for China and South Korea after Chinese New Year holidays. The source sees higher export price would lift the domestic market price. The shipping would increase for export around Tokyo bay while US scrap market price is weak.