Japan Steel Scrap Composite Downs Slightly

Japan Steel Scrap Composite Prices decreased slightly in 4th week in May. The price decreased by 100 yen to 27,300 yen per tonne for H2 and to 32,000 yen per tonne for new cutting pressed scrap from previous week. The price was US$ 332.00 per tonne for H2 and US$ 389.15 for new cutting pressed scrap based on 82.23 yen per US dollar at telegraphic transfer selling rate.

The dealers purchase price decreased by 500 yen to around 28,500 yen per tonne for H2 around Tokyo. Local electric furnace steel makers pay 34,000-35,500 yen for H2 grade scrap. The scrap supply is sill loose under scrap shipping slump from Tokyo bay. The scrap export price from Tokyo bay is lower than the purchase price by local steel makers. The makers reduced the purchase price gradually. The dealers also reduced the purchase price under the slow market.

The dealers around Osaka pay around 27,000 yen per tonne for H2 scrap, which is same level as previous week. Some of local electric furnace steel makers increased the purchase price and some makers increased the purchase volume at spot basis last week. Osaka Steel increased the purchase price by 1,000 yen at Okajima plant for H2 grade scrap. Tokyo Steel Manufacturing reduced the purchase price by 500 yen on Saturday. A dealer said the price move is uncertain under the mixed moves while other makers still watch the situation even after Tokyo Steel’s price cut.

Nagoya’s electric furnace steel makers pay 36,500-37,000 yen per tonne for H2 grade scrap and around 42,000 yen for new cutting scrap. Local market is calm even after Tokyo Steel’s scrap purchase price cut. Local special steel makers plan high level production in June preparing for limited power availability in July and August. Local supply of new cutting scrap is very tight under lower generation volume from manufacturers while local integrated steel works increases the scrap purchase. A trading firm source said the new cutting scrap market couldn’t decrease even local electric furnace steel makers’ purchase price cut.