Utsunomiya plant of Tokyo Steel Manufacturing reduced scrap purchase price by 1,000 yen to 26,500 yen per tonne for H2 and other local electric furnaces followed the move effective on Wednesday. Local 3 electric furnaces stop operations on October 25-27 for Daiwa Steel, October 26 and 27 for Jonan Steel and October 27-November 2 for Tokyo Tekko. Tsukuba plant of Itoh Iron and Steel, Kanto Steel and others reduced scrap purchase prices last week. Scrap shipping volume decreases both for export and domestic destinations from Tokyo diverting scrap to local steels.

Offshore makers seek lower price for Japanese scrap. South Korean largest electric furnace steel, INI Steel purchased Japanese H2 grade scrap at FOB 25,000 yen per tonne, representing FAS 24,000 yen on Thursday. With the 1,000 yen lower price than purchase price by Japanese makers, Japanese could reduce the prices more without positive factor to lift scrap price under easing supply except for high-grade scrap.

Scrap price is also easy in Osaka. Local electric furnaces reduced the purchase prices by 500 yen per tonne after they keep watching and seeing the situation.

Kishiwada Steel reduced scrap purchase price by 500 yen per tonne last week. Shinkansai Steel also reduced the price by 500 yen on Tuesday. Local steels pay around 27,000 yen for H2.

Tokyo Steel Manufacturing reduced scrap purchase price by 1,000 yen at all plants including Okayama on October 15. Four electric furnaces in Himeji area followed the move to reduce purchase price by 500-1,000 yen last week. Local market expects another reduction when steels keep reducing scrap purchase price in Tokyo and Nagoya.

An industry source said makers were said to get smaller volume of scrap with regulation on truck loading. Sluggish export price is said to contribute the decrease, not balance of supply and demand. With the local supply, scrap price has limited room for another decrease.