Peaking Ferrous Scrap Price in Tokyo, Osaka

Ferrous scrap purchase price by electric furnace steel makers in Tokyo and Osaka peaked. Some steel makers reduced the purchase price while the price stays in Osaka. Japanese steel makers reduce the scrap purchase volume under production cut while the scrap supply is still low level nationwide.

Several electric furnace steel makers around Tokyo reduced the scrap purchase price to 17,000-19,000 yen per tonne for H2 grade last week. The averaged price keeps the peak level while the market interests see the price increase stopped due to lower consumption by the makers.

Scrap shipping FAS price from Tokyo bay decreased by 1,000-2,000 yen per tonne last week. The price is same level as purchase price by local steel makers. The dealers try to find the next trend if the makers’ purchase price would turn into decrease.

Scrap market is slow in Osaka. Local electric furnace steel makers minimize the purchase volume by increasing the purchase price only for tight scrap items when local scrap supply decreases and they expand the output reduction.

Electric furnace steel makers around Osaka pay 15,000-17,000 yen per tonne for H2 grade. The market is calm when local makers almost stopped the purchase price increase even after higher priced scrap export tender on Thursday. A dealer source said the market price couldn’t decrease more but the scrap consumption could decrease more when some local makers plan to stop whole operations in yearend and New Year holiday.