Dropping Ferrous Scrap Price in Tokyo

Ferrous scrap market price drops additionally in Tokyo and Osaka under slower demand at home and abroad. Tokyo Steel Manufacturing reduced the steel selling price sharply to encourage the new order and higher steel demand could impact on scrap market. However, scrap dealers anticipate scrap price could decrease to less than 15,000 yen per tonne for H2 at steel makers’ purchase price when the offshore scrap market keeps decreasing.

Tokyo Steel reduced the scrap purchase price by 2,000-3,000 yen per tonne on Tuesday. Other makers followed the move reducing the price to 16,000-19,000 yen for H2 grade in Tokyo and 16,000-17,000 yen in Osaka. Some makers try to reduce the price to less than 15,000 yen.

Scrap dealers around Tokyo expect the makers could reduce the scrap price more under oversupply condition when Japanese steel makers reduce the output and offshore buyers are reluctant to purchase Japanese scrap. The slower export shipping results in oversupply around Tokyo along with the lower consumption by local steel makers.

Electric furnace steel makers around Osaka, which mainly produce concrete reinforcing steel bar, reduce the scrap purchase price wider than Tokyo Steel when they are suffered from sharp drop of rebar demand.