Ferrous Scrap Price Levels Off around Tokyo

Ferrous scrap market price turned into wait-and-see situation around Tokyo. Electric steel makers’ purchase price is flat at 30,500-31,500 yen per tonne and some pay as high as 32,000 yen. Some makers started to reduce the purchase price when ferrous scrap export price hit ceiling. A dealer source said it isn’t clear whether ferrous scrap price drops or not. Supply and demand balance is unlikely to loose soon because scrap turn volume keeps low.

Japanese ferrous scrap export price increased to around FOB 32,000 yen per tonne to Asia for H2 last week. However, some overseas steel makers reduced the offer price last week, when Japanese ferrous scrap price was higher than other countries’. Ferrous scrap export price decreased by FAS 1,000 yen per tonne from Tokyo Bay and became the level as same as domestic makers’ purchase price.

Some domestic makers reduced the purchase price by 1,000 yen per tonne this week. A dealer source said ferrous scrap market price had increased since mid July but tuned into wait-and-see mood.