Lower Ferrous Scrap Price in Tokyo, Osaka

Ferrous scrap market price decreased to less than 20,000 yen per tonne for H2 grade at purchase price by electric furnace steel makers around Tokyo and Osaka by Thursday. The price keeps decreasing when domestic integrated and electric furnace steel makers reduce the purchase volume and the export is slump for East Asia.

Electric furnace steel makers’ scrap purchase price decreased to less than 20,000 yen per tonne for the first time in one and half months around Tokyo. Tokyo Steel Manufacturing’s Utsunomiya plant and other many makers reduced the purchase price by 1,000 yen on Thursday. The price is 18,000-20,000 yen level.

The makers reduce the purchase volume under the production cut while the export transaction is slow from Tokyo bay recently. A trading firm source expects the price could decrease more when the supply balance could get easier under very slow domestic demand depending on the export transaction despite of the low level supply.

The export price is FAS 17,000-18,000 yen per tonne for H2 grade from Tokyo bay. The exporters started to reduce the offer to encourage the demand from offshore buyers.

Electric furnace steel makers around Osaka pay 18,000-19,500 yen per tonne for H2 grade. Most of the makers reduced the purchase price by 500-1,000 yen in the week. The oversupply impacts on the market price when most of the makers reduce the purchase volume while integrated steel makers reduce the scrap purchase. The dealers’ transaction volume gets low level due to low level supply from manufacturers but the dealers have trouble to get buyers even for the low level volume.