Japanese Ferrous Scrap Price Keeps Downward

Japanese ferrous scrap price continues to drop. Electric furnace steel makers’ purchase price decreased by 2,500-3,500 yen per tonne from the peak level in the third week of September. Ferrous scrap export is slowing down to East Asia. A dealer source said dealers’ shipment would lower if the price continues downward.

Japanese ferrous scrap export grows stagnant since late September. Japanese exporters haven’t contracted export orders due to higher yen exchange rate and China National Day. Japanese electric furnaces lowered the purchase price due to slow export.

The makers reduced H2 purchase price to 25,000-26,000 yen per tonne last week and some pay as high as around 26,500 yen around Tokyo. Export price is decreasing from Tokyo Bay following the makers’ purchase price.

In Osaka, local electric furnaces’ purchase price decreased by 1,000-1,500 yen to 27,000-29,000 yen per tonne for H2 grade on October 1, down by 2,000-3,000 yen from the peak level in September. A large dealer source said stagnant export to Asia impacts the local market price.