Ferrous Scrap Price Hits First Drop in a Month

Ferrous scrap price dropped in Tokyo and Osaka for the first time in a month when local makers reduced the scrap purchase price on Wednesday after price reduction by Tokyo Steel Manufacturing. The market gets worse due to worldwide slow demand for construction while Japanese scrap consumption usually increases in demand season of October and November. Turkey’s steel makers reduce the scrap purchase when concrete reinforcing steel purchase decreases in Middle East. US scrap export price dropped by more than US$ 300 per tonne in 2 months. Japanese steel price is also peaked due to slow building demand. The lower scrap price level encourages general contractors and construction steel buyers to hold the order since August. Japanese rebar makers reduce the output to meet the slower demand condition reducing the scrap consumption. The scrap market gets oversupply under slower demand at home and abroad. Tokyo Steel reduced the scrap purchase price by 2,000 yen per tonne at plants in Fukuoka, Takamatsu and Okayama on Wednesday. Two electric furnace steel makers around Tokyo reduced the price by 1,000 yen while some makers around Osaka reduced the price by 2,000 yen on the day.