Weak Ferrous Scrap Price in Tokyo

Ferrous scrap market price is weak at around 61,500 yen per tonne for H2, dealers’ purchase price. Local makers’ purchase price is 68,000-69,500 yen per tonne for H2, some pay as high as 71,000 yen per tonne.Scrap arrivals at local makers are increasing when export shipping is decreasing at Tokyo Bay. Local makers reduced purchase price by 1,000-2,000 yen per tonne. Offshore steel makers don’t contract ferrous scrap import when Japanese scrap is more expensive than overseas. In addition, Japanese dealers are increasing scrap shipment since the market price is decliningSouth Korean steel makers are purchasing ferrous scrap from USA or Russia as well as Japan. A Japanese dealer source said they don’t buy Japanese ferrous scrap of higher price.Makers’ purchase price is likely to decrease more when the supply and demand keeps loose. However, market price is expected not to decrease so widely when ferrous scrap generation keeps slow and Japanese integrated steel makers are increasing purchase volume.