Japan Ferrous Scrap Price Maintains Downtrend

Ferrous scrap market price is weak at 23,000 yen per tonne for H2, 24,800 yen for H1 and 26,500 yen for HS including freight around Tokyo. Local electric furnace steel makers purchase H2 at 28,000-29,000 yen and some pay as high as 29,500 yen. The purchasing price downed by 500 yen from last week. The market price maintains downtrend since late September when ferrous scrap export to East Asia is stagnant. Regional supply and demand balance keeps tight but the market price continues to decrease due to inactive export at Tokyo Bay, according to a scrap dealer.

Around Osaka, the market price is 20,500 yen for H2 and local electric furnaces purchase H2 at 28,000-28,500 yen. Kishiwada Steel lowered the purchasing price by 1,000 yen except for turning scrap on Wednesday. Godo Steel also downed the purchasing price by 500 yen except for turning scrap. Nakayama Kogyo decreased the purchasing price for all items.

In Himeji area, Yamato Steel and Sanyo Special Steel lowered the purchasing price by 500 yen while JFE Bars & Shapes decreased the price by 1,000 yen for new cutting scrap and by 500 yen for other items. A scrap dealer source said Tokyo Steel’s price down announcement for steel products of November contracts made strong impact on scrap price.