Lowering Ferrous Scrap Price in Tokyo, Osaka

Japanese ferrous scrap market price is downward in Tokyo and Osaka due to lower export price for East Asia. A dealer said domestic electric furnace steel makers would reduce the scrap purchase price more.

Electric furnace steel makers pay 32,000-33,000 yen per tonne for H2 grade around Tokyo. Tokyo Steel Manufacturing’s Utsunomiya plant reduced the purchase price by 500 yen on March 10 and other makers followed the move. The averaged price decreased by 1,000 yen from previous week.

Scrap purchase price around Tokyo bay is FAS 31,000-31,500 yen per tonne, which is 500-1,000 yen lower than the price at the beginning of the month. The lower export price impacted on the steel makers’ purchase price.

Kanto Tetsugen’s monthly export tender price was averaged FAS 32,482 yen per tonne last week. A dealer said the price was higher than expected but the local steel makers’ purchase price is still higher than FAS price around Tokyo.

Scrap price also decreases around Osaka. After Tokyo Steel’s price cut, local steel makers reduced the scrap purchase price by 500 yen to 32,000-33,500 yen per tonne for H2 grade. A dealer source said some of the makers still pay higher price under tight supply for some grades of scrap.