Japan Ferrous Scrap Price Decreases by over 30% for 10 Days

Ferrous scrap market price decreased by 13,000 yen per tonne or 31% in October for only 10 days around Tokyo and by 15,000 yen per tonne or 32% around Osaka. All large dealers turned down the export tender held by Kanto Tetsugen on Thursday.

Tokyo Steel Manufacturing, Japanese biggest electric furnace maker announced the firm decreased the purchase price of ferrous scrap for 5 times in this month. The firm decreased the purchase price by 13,000 yen per tonne in Utsunomiya works, by 15,000 yen in Okayama, Kyusyu and Takamatsu works.

The ferrous scrap market price fell below 30,000 yen per tonne for H2 grade. Each electric furnace maker reduced the purchase price by 3,000 yen per tonne to 29,500-30,000 yen for H2 from Thursday. Most makers stopped and limited the acceptance of the ferrous scrap due to stagnancy o ferrous scrap export.

The market price around Osaka is likely to fall below 30,000 yen per tonne for H2. The makers’ purchase price decreased to 32000-33000 yen per tonne by 3,000-4,000 yen for H2.

Each electric furnace maker is expected to more reduce the output after November when their award volume would largely decrease. Large dealer source said the export volume and price isn’t expected to increase for East Asia.