Japan Ferrous Scrap Composite Price Continues Downward

Japan Ferrous Scrap Composite Price continued to decrease for May 17-21, which is an averaged purchase price by scrap dealers in Tokyo, Osaka and Nagoya. The price lowered by 200 yen to 28,600 yen per tonne for H2 grade and by 200 yen to 33,100 yen per tonne for cutting press from the previous week. The market price downed in Tokyo.

The market price decreased in Tokyo for 2 weeks in a row. The price surveyed on May 21 was around 31,500 yen per tonne for H2 grade. Scrap export from Tokyo Bay has slowed down and scrap arrivals have increased at local electric furnace steel makers. As a result, electric furnaces reduced their scrap purchasing price and local scrap dealers followed the price cut.

Electric furnaces around Tokyo paid 37,000-37,500 yen per tonne for H2 and some paid as high as 38,000 yen on May 24. The price declined by 1,000-1,500 yen from the recent peak in mid April.

Market price around Osaka is weak at around 30,000 yen per tonne for H2. Local electric furnaces purchase H2 at around 37,500-38,500 yen

In Nagoya, electric furnaces pay 40,000-41,000 yen per tonne for cutting press while 37,000-37,500 yen per tonne for H2. Local demand for cutting press is active from special steel makers and integrated steel makers. The demand for new cutting scrap is also steady from South Korea. Consequently, price gap is widening between heavy scrap and new cutting scrap.