Weak Japan Ferrous Scrap Price

Ferrous scrap market price would decrease from around 30,000 yen per tonne for H2 grade, around 31,800 yen for H1 grade and around 33,500 yen for HS grade at the dealers’ purchase price including freight around Tokyo. Local electric furnace steel makers’ purchase price decreased by 1,000-2,000 yen to 35,000-36,500 yen for H2 grade from last week. Some makers pay around 37,000 yen.

Ferrous scrap market price is decreasing when local electric furnaces normalize the scrap purchase activity while they built inventory in late April preparing for operation during long holidays in early May. The slower scrap export transaction also impacts on the domestic market. Local dealer sources see the price depends on result of the export tender held by local dealers group on May 11.

Ferrous scrap market price would decrease from around 29,000 yen per tonne for H2 grade at the dealers’ purchase price including freight around Osaka. Local electric furnaces pay 37,000-38,000 yen for H2 grade and some makers pay around 39,000 yen.

Tokyo Steel Manufacturing reduced the ferrous scrap purchase price by total 2,000 yen on May 3 and 7. Local electric furnaces followed price reduction at plants in Himeji while some makers reduced the price by only 500-1,000 yen at plants in Osaka. However, some electric furnaces reduced the purchase price at plants in Osaka on Tuesday. A dealer source sees the price would decline more when other electric furnaces are expected to follow the price reduction.