Japan Ferrous Scrap Market Price Continues Decreasing by 500-1,000 Yen/t

Japanese ferrous scrap market price decreased by 500-1,000 yen per tonne for H2 grade this week. Japanese electric furnace steel makers purchase H2 at 27,000-28,000 yen and some pay as high as 28,500 yen. The supply and demand balance is maintained but the market price is unlikely to rebound until ferrous scrap export is intensified, according to a scrap dealer.

Around Tokyo, local electric furnace steel makers reduced purchasing price by 500-1,000 yen per tonne to 27,000-28,000 yen in mid of this week and some pay as high as 28,500 yen. Newly contracted export price is FOB 28,000 yen for H2 to East Asia. Some dealers seem to have contracted exports to South Korea and Taiwan just currently. However, export price is lower than domestic steel makers’ purchasing price. Local market price has quite possibility to decrease, according to a scrap dealer.

Around Osaka, local electric furnaces lowered purchasing price on September 20-21. Some makers are moving to additional price down. The present price is 27,500-28,500 yen for H2. Marine shipment of ferrous scrap continues from Tokyo area to Osaka area when export price maintains low. The market price may continue downward and steel product market price would follow the downtrend.

Many dealers also point out the market price has decreased due to less scrap shipment to domestic integrated steel makers.