Japan Ferrous Scrap Price Declines 35,000 yen/t

Japanese Ferrous scrap price decreased to less than 35,000 yen per tonne at electric furnace steel makers’ purchase price this week. The price is 34,000-35,000 yen for H2 grade including freight and some makers pay as high as 36,000 yen, which decreased by 2,000-2,500 yen from last week. The price declined when export price is lower than the domestic price and the ferrous scrap supply increases to domestic electric furnaces due to the lower export shipping.

The electric furnaces around Tokyo reduced the purchase price by 500 yen per tonne on Monday. The price is 34,500-35,000 yen and the higher price is around 36,000 yen for H2 grade. The scrap shipping slows from Tokyo bay and the market price could decline more, according to dealer sources.

The export price to East Asia is weak. While South Korean steel makers are still willing to buy Japanese scrap, other offshore steel makers are reluctant to purchase the scrap at high price from Japan.

The price decreased around Osaka on Monday. The electric furnaces followed the price reduction by Tokyo Steel Manufacturing. The makers purchase price decreased by 500-1,000 yen to 34,000-35,500 yen per tonne for H2 grade including freight. The steel makers would reduce the price more unless the scrap export price and overseas market price increases, according to dealer sources.