Lower Japan Steel Scrap Composite Price

Japan Steel Scrap Composite Prices, which are averaged ferrous scrap market price in Tokyo, Nagoya and Osaka, decreased for 3 weeks in a row through last week. The price was 29,400 yen per tonne for H2 grade at the dealers’ purchase price including freight, which was 700 yen lower than a week earlier level. The price was 33,000 yen for pressed new cutting scrap, which decreased by 600 yen.

The dealers’ scrap purchase price was 33,200 yen per tonne for H2 grade around Tokyo on Friday as the previous week. Local electric furnace steel makers’ scrap purchase price was 38,000-39,000 yen for H2 grade. Most of the electric furnaces have stopped the purchase after the major earthquake. However, the scrap supply is expected to keep the balance due to lower inventory held by the dealers.

Electric furnace steel makers pay 36,500 yen per tonne for H2 grade scrap around Nagoya last week. Local makers have resumed the scrap purchase and their operation is at normal level. Tokyo Steel Manufacturing reduced the purchase price by 2,000 yen on Friday and other local makers followed the price reduction.

The dealers’ scrap purchase price was around 31,000 yen per tonne for H2 grade around Osaka. Local electric furnaces decreased the purchase price in early this month and Tokyo Steel reduced the price on March 11 for the first time in about 5 months. The scrap supply for local makers was limited due to scrap shipment for existing export order. The dealers increase the scrap purchase under fiscal yearend liquidation activity by manufacturers.