Japan, Makers’ Ferrous Scrap Purchase Price Falls below 40,000 Yen/t

Ferrous scrap market price fell to below 40,000 yen per tonne for H2 grade around Tokyo. Decreased export contracts to East Asia made impact to the market price. Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, reduced the purchase price of ferrous scrap on 3 and 4 October. Other electric furnaces reduced the purchase price, too.

Electric furnaces around Tokyo decreased ferrous scrap purchase price by 2,000 yen to 41,000-42,000 yen per tonne on 3 October and implemented additional price cut on 4 October. Some makers’ purchase price fell to below 40,000 yen per tonne for the first time since the end of August.

There were few export contracts of ferrous scrap at Tokyo bay in and after mid September. Quay inventories increased gradually and the export contract price decreased for FAS base at the end of September. Some shippers are setting limitations on scrap purchasing volume. Surplus inventories flowed to local electric furnace steel makers.

The ferrous scrap market price is also decreasing rapidly around Osaka since Tokyo Steel Manufacturing offered price cut continuously. A large electric furnace steel maker in Himeji announced the first price cut in a month. Local electric furnaces are following the movement.

Yamato Steel, Himeji iron works of JFE Shape and Bar Steel, Himeji iron works of Godo Steel and Sanyo Special Steel around Himeji decreased the purchase price by 2,000 yen per tonne on 3 October and by 3,000 yen on 4 October. Kishiwada Steel reduced the purchase price by 2,000 yen per tonne on 3 October around Osaka. Many makers reduced the purchase price on 4 October, too.