Lower Japan Ferrous Scrap Price

Japanese ferrous scrap market keeps decreasing. Electric furnace steel makers reduced the purchase price by 1,500-2,000 yen to 28,000-29,500 yen per tonne for H2 grade scrap in a week. The market is expected to decrease more when the export price is still lower than electric furnace steel makers’ purchase price.

Electric furnace steel makers around Tokyo pay 28,000-29,500 yen per tonne for H2 grade scrap, which is 1,500 yen lower than previous week. Tokyo Steel Manufacturing’s Utsunomiya plant and other major makers reduced the purchase price by 500 yen on Thursday. The export price is around FOB 28,500 yen per tonne for H2 grade to Asian buyers, which is around 4,000 yen lower than recent peak in late August.

Osaka area’s electric furnace steel makers also reduce the scrap purchase price to 28,500-29,500 yen per tonne for H2 grade. Lower purchase volume by integrated steel makers also impacts on the market. A dealer source said the supply is loose for higher grade scrap including HS and new cutting grade and the scrap market could decrease more depending on the steel market.