Ferrous Scrap Market Price Drops around Tokyo

Ferrous scrap market price slightly decreased around Tokyo. Tokyo Steel Manufacturing reduced the purchase price by 500 yen per tonne at Ustunomiya plant on Saturday. Local electric furnace steel makers followed the move by Tokyo Steel by Monday. Local electric furnaces’ purchase price decreased to 25,500-26,500 yen per tonne for H2 grade.

Japanese ferrous scrap export price decreased for East Asia under lower US export price and expectation for lower price in offshore market. Weak Japanese export price impacts on local market price around Tokyo. The pace of decrease slows but one dealer source sees the price would decrease more.

Local exporters’ ferrous scrap purchase price is around FAS 25,000 yen per tonne for H2 grade around Tokyo bay. Large volume of scrap shipping is scheduled for this week. The dealer source sees some exporters try to secure the scrap at as high as FAS 26,000 yen. The source sees local electric furnaces slightly reduced the price to watch the trend of export price.