Japan Ferrous Scrap Market Price Turns to Weak Trend

Japanese ferrous scrap market price decreased due to slumber of the export price. The export price levels off at FOB 34,000 yen per tonne for H2 grade though U.S. ferrous scrap price stays high. Strong yen trend impacts Japanese ferrous scrap export price. Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, lowered its scrap purchasing price by 500 yen per tonne at the all works on Saturday. Price cut spread among other electric furnaces around Tokyo and Osaka. The market price decreased for the first time in 3 weeks around Tokyo.

Around Tokyo, electric furnaces paid 34,000-35,000 yen per tonne for H2 as of Monday. The price decreased for the first time in 3 weeks. The export price from Tokyo Bay is also decreasing gradually. The price recently lowered for new export contracts and shipment for West Japan. One large scrap dealer said steel makers can easily reduce their purchasing prices when export market price is weak and steel makers plan regular furnace maintenance in mid-late August. Meanwhile, the price down range is relatively narrow since scrap generation volume maintains slow.

Around Osaka, electric furnaces pay 35,500-37,000 yen per tonne for H2. After Tokyo Steel’s price cut, Kyoei Steel, Nakayama Steel Products, Godo Steel’s Osaka and Himeji works, Yamato Steel and Himeji works of JFE Bars & Shapes lowered purchasing prices by 500 yen per tonne for all scrap items. Shinkansai Steel cut the purchase price by 500 yen for turning scrap, HR grade, H1 grade and new cutting scrap.