Japan Ferrous Scrap Price Keeps Stable

Japanese ferrous scrap market price stays firm at around 23,500-25,000 yen per tonne for H2 grade. A dealer source said Japanese ferrous scrap export for East Asia is expected to pull up domestic market price. Japanese scrap export price is rising contrary to low domestic demand.

New export contract price for East Asia surged by 1,500 yen to FOB 26,900 yen per tonne for H2 from the end of November. South Korean steel makers are purchasing Japanese ferrous scrap actively when the scrap price is lower than US scrap price.

In Tokyo, local steel makers purchase H2 at around 24,000-25,000 yen per tonne and some pay as high as 25,500 yen. The price keeps flat from early November. Scrap supply is tight thanks to active export.

In Osaka, local steel makers purchase H2 at around 23,500-25,000 yen per tonne, The price leveled off as of Friday from the previous week. Electric furnace steel makers continue output reductions due to low demand for building materials. Meanwhile, scrap supply is also decreasing. Consequently the market price levels off.

Scrap arrivals are slow at dealers’ sites despite of active trade season in usual December. Scrap dealers’ association around Osaka, Kansai Tetsugen, schedules cooperative export at 10,000 tonnes in January. A large dealer source said local demand for ferrous scrap is expected to be as low as 200,000 tonnes in January around Osaka while scrap supply may decline more.