Ferrous scrap market price decreased for 2 months in a row around Tokyo and Osaka when the export decreases to China and other East Asia. The scrap dealers had increased export while the purchase by domestic electric furnace steel makers remains low. U.S. composite price, the indicator of overseas scrap price, stays flat. However, one trade firm source said the demand of scrap and steel products is unforeseeable when the exchange rate is less than 90 yen to US dollar.The purchase price by electric furnace steel makers around Tokyo decreased to around 26,000-27,000 yen per tonne and around 27,500 yen at higher price for H2 grade on Tuesday while Tokyo Steel Manufacturing reduced the purchase price by 1,500 yen on the same day just after the firm decreased the price on Friday. The steel makers’ purchase price decreased by 1,500-2,500 yen per tonne compared with the peak in third week of September. However, market sources see the price could decline more when FAS shipping price is decreasing. Domestic electric furnace steels’ purchase price decreased to less than 30,000 yen per tonne around Osaka. The price is around 28,000-29,500 yen and around 30,500 yen at higher price. The makers reduced the price by 500-1,000 yen from the end of the last week to the beginning of this week. However, the price around Osaka is 1,000-2,000 yen higher than Tokyo. Market price is likely to decrease more.
Japan Steel Scrap Composite Prices (Sangyo Press)11/15/2018
|32700YEN (-)||37900YEN (-)|
|285.17US$ (0.67)||330.51US$ (0.77)|
* Average of electric furnaces steel maker's purchasing price in Tokyo, Osaka and Nagoya (per ton)