Ferrous Scrap Price in Osaka Falls below Tokyo

Japanese ferrous scrap market price around Osaka became lower than Tokyo for the first time in one and a half months. The ferrous scrap purchase price of electric furnace steel makers declined by 3,000-4,000 yen per tonne around Osaka compared with the peak in June while the price around Tokyo declined only slightly. The price around Osaka is around 1,000 yen lower than Tokyo level. Electric furnaces around Osaka stop or reduce the scrap purchase due to the outage. The purchase price of electric furnaces around Osaka would decline more, market sources expect.

The scrap purchase price is 28,000-29,000 yen per tonne for H2 grade around Tokyo and some makers pay around 29,500 yen. The price stays flat in the past week while the export price is FOB 26,800 yen for H2 grade. The makers’ purchase price would not decline drastically due to the decrease in supply, according to dealer source.

On the other hand, the makers’ purchase price is 27,000-28,000 yen per tonne around Osaka. The local electric furnaces other than Godo Steel reduced the price from Saturday. The price would remain weak, according to trade firm source.