Japan Ferrous Scrap Price Drops by 1,000 yen/t

Japanese ferrous scrap price decreased by 1,000 yen per tonne late last week. The price decreased to 32,000-33,500 yen per tonne for H2 grade at local steel makers purchase price including freight, which is 2,500-3,000 yen lower than last week level and 5,000-6,000 yen lower than recent peak in mid-April. The makers reduce the purchase price gradually when the supply gets looser due to slower scrap shipping for export market.

Local electric furnace steel makers pay 32,000-33,500 yen per tonne for H2 grade scrap around Tokyo. Tokyo Steel Manufacturing’ plant and other makers reduced the purchase price by 1,000 yen on Saturday. The purchase price is 5,000-6,000 yen lower than the recent peak in mid-April but the price is expected to decrease more under slow export shipping.

Electric furnace steel makers pay 32,000-33,000 yen per tonne for H2 grade scrap, which is decreasing when the makers reduce the price late last week. A trading firm source said lower export shipping pressures on domestic market. The makers reduced the price by total 3,000 yen in June. However, the makers keep the purchase price for high grade scrap when some integrated steel makers keep the purchase price.

Chairman Katsutoshi Kurikawa of Non-Integrated Steel Producers’ Association said at press conference on Monday the scrap market price would rebound again while the price decreases in short time frame. The president of Godo Steel said scrap inventory level is high level in China but the market price rebounds after the Chinese inventory adjustment.