Increasing Weakness in Japan Ferrous Scrap Mart

Japanese ferrous scrap market increases weak mood. The market turned into weak in Tokyo after lower export tender price than local electric furnace steel makers’ purchase price while Osaka market was decreasing since the beginning of the month. The market price in Tokyo would decrease immediate future when FAS shipping price from Tokyo bay is lower than local makers’ purchase price. Local electric furnace steel makers around Tokyo pay 31,000-32,500 yen per tonne for H2 grade scrap. The price was almost flat last week despite of purchase price cut by several makers. However, other makers are expected to decrease the purchase price. The export price is around FOB 31,000 yen per tonne for H2 from Tokyo bay. The tender price was FAS 30,115 yen at the monthly tender by Kanto Tetsugen on Thursday. The lower export price should impact on local makers’ purchase price. Osaka’s electric furnace steel makers pay 31,000-32,000 yen per tonne for H2 grade after all local makers reduced the purchase price by Friday. However, the price cut took near 2 weeks for all makers when the makers were reluctant to cut the price to secure the materials. Some scrap dealers expect the scrap price could rebound when local makers increase the production in September from August.