Stable Ferrous Scrap Price in Tokyo

Ferrous scrap market price is flat around Tokyo with support by export for East Asian market while the local consumption is till very slow under major production cut by local electric furnace carbon steel makers. The price is expected to keep the level with balanced supply when the supply volume couldn’t increase and the export shipping continues through mid-December.

Local dealers’ purchase price is around 18,000 yen per tonne for H2 grade scrap, which is 1,000 yen higher than November level. Local electric furnace steel makers pay 24,000-25,500 yen for H2.

Local scrap consumption is still low level while the supply is balanced due to low level scrap generation and certain export shipping. Tokyo Steel Manufacturing and other local steel makers increased the purchase price by 2,000-3,500 yen per tonne from late October to mid-November.

Local scrap market price is still under pressure when construction steel products’ price decreases and steel products’ demand is very slow. Local scrap dealers keep the scrap purchase price along with steel makers’ move while some of the makers reduced the purchase price since late November.

The scrap export increased mainly for South Korea since mid-November. The export price is FOB 26,000-26,500 yen per tonne for H2 grade, which is around 3,000 yen higher than the level in mid-October. Successful bids at tender held by Kanto Tetsugen on November 11 were slightly lower than the spot export price but the tenders’ 25,000 tonnes shipment could support local supply balance.