Japan Ferrous Scrap Composite Price Stays Flat for 2 Weeks

Japan Ferrous Scrap Composite Price kept flat for 2 weeks, which is an averaged purchase price by scrap dealers in Tokyo, Osaka and Nagoya. The price was 19,800 yen per tonne for H2 grade and 24,000 yen per tonne for new cutting scrap as of November 5, according to the survey by Japan Metal Bulletin. Most steel makers set their scrap purchasing price unchanged.

Around Tokyo, the market price is 22,000 yen per tonne for H2. Local steel makers pay 27,000-28,000 yen and some pay as high as 28,500 yen for H2. Newly contracted export price is slightly increasing to FOB 29,000 yen for H2 grade to East Asia. Export price is catching up with local steel makers’ purchase price. A dealer source said some steel makers raised the purchase price.

In Nagoya, the market price is 16,800 yen for H2. Local steel makers pay 27,000 yen for H2 grade and 33,000 yen for new cutting scrap. Some dealers raised the purchase price for H1 and H2 grade. On the contrary, some of local steel makers lowered their purchase volume especially for high grade scrap and turning scrap due to abundant stocks.

Around Osaka, the market price stays at 20,500 yen for H2. Local steel makers pay 27,500-28,500 yen for H2 and some pay as high as around 29,000 yen. A dealer source said the price was expected to decline to 25,000-26,000 yen but seems to hit bottom when the supply and demand balance is tightening due to low scrap generation and offshore market price hit bottom. Some of local steel makers restarted spot purchase. Kishiwada Steel raised the purchase price by 500 yen per tonne on November 5.