Weak Ferrous Scrap Price in Tokyo and Osaka

Ferrous scrap market price levels off in potential weak tone around Tokyo and Osaka. Scrap dealers’ purchasing price is around 28,500 yen per tonne for H2 grade including freight in Tokyo while 30,300 yen for H1 and 32,000 yen for HS. Electric furnace steel makers around Tokyo paid 34,000-35,000 yen for H2 and some paid as high as 35,500 yen on Tuesday. Electric furnaces’ purchasing price lowered by 500 yen from the previous week.

Scrap dealers’ purchasing price has been decreasing since the end of April. The price declined by 500 yen at the end of last week. Domestic demand maintains weak and electric furnaces including Tokyo Steel Manufacturing lowered their purchasing prices.

Around Osaka, scrap dealers’ purchasing price is around 27,000 yen for H2. Local electric furnaces pay 36,000-37,000 yen for H2 and some pay as high as 37,500 yen. Tokyo Steel lowered the purchasing price by 500 yen on May 21 except for Kyushu plant. Some of local electric furnaces followed Tokyo Steel’s price cut.

Ferrous scrap export is slow from the U.S.A. to Turkey or from Japan to East Asia. One scrap dealer said domestic market price might decline more when export market maintains weak.