Weak Ferrous Scrap Price, Wider Price Gap in Osaka, Tokyo

Tokyo Steel Manufacturing reduced ferrous scrap purchase price by 500 yen per tonne on Saturday. The revised purchase price for H2 grade is 34,000 yen for Takamatsu plant, 35,000 yen for Utsunomiya plant, 36,000 yen for Okayama plant, 36,500 yen for Kyushu plant and ocean transport to Tahara plant and 37,000 yen for land transport to Tahara plant.

Ferrous scrap market price gap is expanding to 2,000-3,000 yen per tonne for H2 grade between Osaka and Tokyo. Local electric furnace steel makers reduced ferrous scrap purchase price by total 4,000-5,000 yen to 36,000-37,500 yen for H2 grade in Osaka from late April while the price decreased by around 6,000 yen to 33,500-34,500 yen in Tokyo.

Local scrap dealer source sees ferrous scrap market price could decline more in Tokyo when the export price remains low at around FOB 34,500 yen per tonne for H2 grade. The dealer source around Osaka also sees the local market price could decline due to higher local electric furnaces’ purchase price than the makers around Tokyo and the export price.