Ferrous Scrap Market Price Drops in Tokyo, Osaka

Ferrous scrap market price decreased in Tokyo and Osaka. The export price decreased for South Korea under international weak market. Tokyo Steel Manufacturing reduced scrap purchase price by 500-1,000 yen per tonne for all plants under the trend on Friday.

Local electric furnace steel makers’ scrap purchase price decreased to 30,000-31,000 yen per tonne for H2 grade around Tokyo. The market price decreased for the first time in around a month due to slower demand. The export price decreased by 1,000-1,500 yen to around FAS 30,000 yen last week. Some makers around Tokyo reduced the bid price to less than 30,000 yen under lower export price.

Local electric furnaces’ scrap purchase price is 30,500-31,500 yen per tonne for H2 grade around Osaka. Local makers reduced the purchase price last week earlier than Tokyo Steel. The local makers reduce the price again on Friday. The trader source sees the demand could increase if local makers increase the output in June under higher electric charge and potential shortage of power supply in Kansai Electric Power’s supply area from July.