Ferrous scrap market price would decrease from around 29,000 yen per tonne for H2 grade, around 30,800 yen for H1 grade and around 32,500 yen for HS grade at the dealers’ purchase price including freight around Tokyo. Local electric furnace steel makers pay 34,500-35,500 yen for H2 grade.
Most of local electric furnaces left the scrap purchase price unchanged while the makers would reduce the purchase volume to prepare for maintenance outage in summer. The purchase price could decrease due to weak steel market price. However, one trading firm source sees the scrap price could keep the price range with recovering demand toward autumn. Further scrap price decrease would pressure on the steel price. Ferrous scrap market price is flat with potential weakness at around 27,500 yen per tonne for H2 grade at the dealers’ purchase price including freight around Osaka. Local electric furnaces pay 36,500-37,000 yen for H2 grade. Tokyo Steel Manufacturing reduced the scrap purchase price by 500 yen per tonne at Kyushu plant and land transport for Tahara plant on Friday. Kishiwada Steel reduced the price by 500 yen for other grades than turning scrap on the same day and Godo Steel also reduced the price by 500 yen at plant in Osaka. One dealer source sees other makers also reduce the price when the makers secure the scrap stock before the maintenance outage.Japan Steel Scrap Composite Prices (Sangyo Press)
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