Japanese ferrous scrap price decreased by 5,000-6,000 yen per tonne from the peak in September when the export transaction is very slow for East Asia. Domestic steel makers reduce scrap purchase price again and again. The makers’ purchase price decreased to less than 25,000 yen per tonne for H2 for some makers around Osaka as Tokyo.
Electric furnace steel makers’ scrap purchase price decreased by 2,000 yen to 22,000-23,500 yen per tonne for H2 grade scrap around Tokyo on Wednesday. The makers reduced the purchase price by 1,000 yen to 24,500-27,000 yen, which is 5,000-6,000 yen lower than recent peak. Japanese scrap export transaction is very thin since late September due to higher yen rate and Chinese National Day holiday. Several transactions are settled at FOB 24,000-25,000 yen per tonne for H2 but the export deal has little impact on domestic market. Domestic scrap dealers try to minimize the inventory when the market price keeps decreasing since late September. A trading firm source said the makers can reduce the purchase price when they can get scrap stably.Japan Steel Scrap Composite Prices (Sangyo Press)
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