Japan Ferrous Scrap Price Decreases for 6 Consecutive Weeks

Japanese ferrous scrap market price declined for 6 consecutive weeks. Electric furnace steel makers’ purchasing price was 31,000-34,000 yen per tonne for H2, down by 3,500-4,000 yen from last week while some paid as high as 32,500 yen as of Wednesday. Scrap dealers forecast the market price maintains downward trend when newly contracted export price stays lower than the domestic market price.

Around Tokyo, electric furnaces paid 31,000-32,000 yen per tonne for H2 on Wednesday, down by 3,500-4,000 yen from last week, while some paid as high as 32,500 yen. Most makers lowered the purchase price by 1,000 yen on Wednesday. A dealer source said the supply and demand balance isn’t’ tight due to slow export. Newly contracted export price is around FOB 31,000 yen for H2 shipped to East Asia. The contract price is lower by 8,000-8,500 yen from the peak in mid April.

Around Osaka, electric furnaces pay 31,000-32,000 yen per tonne for H2. Most steel makers decreased the purchase price by 1,000 yen on Wednesday. The market price was above 40,000 yen before long holidays in early May but declined by about 9,000 yen from the recent peak level. A large dealer source said they would increase ferrous scrap stocks if the market price continues to lower.