Ferrous Scrap Price to Hit Bottom in Tokyo

Ferrous scrap market shows sign to hit bottom around Tokyo when the scrap export price is expected to rebound. The market price is around 30,000 yen per tonne for H2 grade at dealers’ purchase price including freight. Local electric furnace steel makers pay 34,500-36,000 yen and some makers pay as high as 36,500 yen, which is 2,000 yen lower than previous month. The local market dropped in early October when the dealers shipped scrap more for steel makers under slower shipping from Tokyo bay. Local steel makers reduced the purchase price gradually and the purchase price decreased by 5,000 yen per tonne in one and half months. The scrap price now shows sign to rebound last week. Hyundai Steel of South Korea left the offer price at FOB 35,500 yen per tonne for H2 and 40,000 yen for new cutting grade to Japanese scrap at the weekly tender last week. Steel makers in Taiwan and China also restarted purchase of Japanese scrap. The export price negotiation level is now more than purchase price by makers around Tokyo.