Japan Fe Scrap Composite Price Continues to Lower

Japanese ferrous scrap composite price continued to lower during August 31-September 4 from the previous week. The price was 19,800 yen per tonne for H2 grade, down by 1,500 yen from the previous week, and 23,600 yen per tonne for new cutting scrap with press, down by 1,400 yen, according to Japan Metal Bulletin’s survey data on Friday.

Calculated with telegraphic transfer selling rate at 93.70 yen per US dollar, H2 price lowered by US$ 16.01 to US$ 211.31 per tonne and new cutting scrap with press decreased by US$ 14.94 to US$ 251.87 per tonne.

Tokyo Steel Manufacturing and other domestic steel makers lowered their scrap purchasing price step by step after Japanese scrap export price to East Asia declined. Scrap dealers followed the makers’ price down.

H2 market price decreased by 1,500 yen to around 20,500 yen per tonne around Tokyo from the previous week. The price downed by 3,000-4,000 yen from the recent peak in mid August. In Nagoya, H2 market price lowered by 2,000 yen. In Osaka, H2 market price was around 21,500 yen on Friday.

Ferrous scrap generation maintains very low. Meanwhile, scrap export stably continues from Tokyo Bay and Osaka Bay. Domestic supply and demand balance is expected to keep tight.