Ferrous Scrap Price Drops for the First Time in 2 months in Tokyo
Ferrous scrap price turned into decrease in Tokyo at purchase price by local electric furnace steel makers for the first time in 2 months. The purchase price decreased by 1,000 yen or 3.5% to around 27,000 yen per tonne for H2. Some makers pays around 28,500 yen for H2. Scrap export price decreased by around 4,000 yen or 14.2% to FAS 24,000 yen at recent done deal. Local electric furnaces are likely to reduce scrap purchase price more when domestic price is still lower than export price.
Utsunomiya of Tokyo Steel Manufacturing reduced scrap purchase price by 1,000 yen to 28,500 yen per tonne for H2 on Tuesday. Daiwa Steel, Jonan Steel and Chiyoda Steel reduced purchase prices by 1,000 yen to 26,000 yen for H2 and Asahi Industries reduced the price by 1,000 yen to 26,400 yen on Tuesday.
Itoh Iron and Steel reduced the price by 1,000 yen to 26,000 yen per tonne on Wednesday. Kanto Steel reduced the price by 1,000 yen to 22,900 yen, Tokyo Kohtetsu reduced the price by 1,000 yen to 26,300 yen and NKK Bars & Shapes reduced the price by 2,000 yen to 25,000 yen on the day.
Scrap shipping price is accelerating the decrease at FAS 25,500-26,000 yen per tonne both for export and domestic shipping from Tokyo bay. The price is 2,000-2,500 yen or 8% lower than in the beginning of August. Recent export price decreased to around 24,000 yen. Japanese market players expect the price continues to decrease under easing supply with summer output reduction by local makers.
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