Ferrous Scrap Price Keeps Dropping in Tokyo

Electric furnace steel makers around Tokyo reduced the ferrous scrap purchase price by 3,000 yen to 21,500-24,000 yen per tonne for H2 on Thursday. Some makers already purchase scrap at less than 20,000 yen and the price level could decrease more.

Scrap export shipment from Tokyo bay keeps slow. Major export shippers stop the scrap purchase. Local scrap dealers focus on shipment for local electric furnace steel makers while the makers reduce the purchase price.

Utsunomiya plant of Tokyo Steel Manufacturing reduced the scrap purchase price by total 5,000 yen per tonne on Wednesday and Thursday. Other makers followed the move.

Local makers reduced the scrap purchase price by around 22,000 yen per tonne in the month. A trader source expects the price level could decrease more when most of the makers limit the purchase volume under slower consumption.