Japan Steel Scrap Composite Price Declines Again

Japan Steel Scrap Composite Prices, which are averaged ferrous scrap market prices in Tokyo, Nagoya and Osaka, decreased for 4 weeks in a row through last week. The price was 27,400 yen per tonne for H2 grade at the dealers’ purchase price including freight, which was 2,000 yen lower than a week earlier level. The price was 30,800 yen for pressed new cutting scrap, which decreased by 2,200 yen.

The dealers’ scrap purchase price is around 28,500 yen per tonne for H2 grade around Tokyo, which is 2,000-3,000 yen lower than a week earlier level. Local electric furnace steel makers’ purchase price is 34,000-35,000 yen for H2 grade while some makers pay around 35,500 yen. The scrap demand is significantly decreasing when local electric furnaces cannot operate normally due to controlled blackout program.

The dealers’ scrap purchase price is around 24,800 yen per tonne for H2 grade around Nagoya. Local makers’ purchase price is around 35,500 yen for H2 grade, which is 1,000-1,500 yen lower than a week earlier level. The scrap export is thin while the export price to South Korea was around FOB 37,000 yen in early last week.

The dealers’ scrap purchase price is around 29,000 yen per tonne for H2 grade, which is 3,500 yen lower compared with the recent peak. Local electric furnaces reduced the purchase price on Thursday and Tokyo Steel Manufacturing reduced the price at all plants on Friday. A trading firm source expects the market price could decrease more depending on situation around Tokyo.