Japan Ferrous Scrap Price Levels Off

Japanese ferrous scrap market price levels off when the export price upsurge for East Asia settled down and most of domestic electric furnace steel makers continue output reduction during long holidays in early May. Meanwhile, supply and demand of ferrous scrap could keep balance with shipment of contracted exports in May.

The export price to South Korea is around FOB 23,000 yen per tonne for H2 grade. Some South Korean steel makers are lowering offer price to Japan because large quantity of ferrous scrap is scheduled to be delivered from USA in June.

Japanese electric furnaces will continue wide-range output reduction but the supply and demand remain balanced with active export around Tokyo. Electric furnaces’ purchase price of ferrous scrap keeps flat at 20,000-21,000 yen per tonne for H2 from last week and some pay as high as 22,000 yen around Tokyo. Some makers raised the purchase price by 500-1,000 yen per tonne last week while others reduced those who finished ferrous scrap procurement before May long holidays.

Around Osaka, electric furnaces’ purchase price keeps flat at 19,500-21,000 yen per tonne for H2. Four makers in Himeji area raised the purchase price after Tokyo Steel Manufacturing raised the purchase price last week. On the other hand, makers in Osaka set the price unchanged. A large dealer source explained electric furnace steel makers didn’t raise the purchase price because most makers continue low operation in May long holidays.