Japanese Ferrous Scrap price Hits Bottom

It sounds that ferrous scrap market price hit bottom around Tokyo due to export contract price may rise. Ferrous scrap purchasing price of local electric furnace maker decreased to 34,500-36,000 yen per tonne by 2,000 yen compared to last month. Some pay as high as 36500 yen per tonne.The market price got into decreasing phase from 3 holidays in the first half of October. Ferrous scrap in Tokyo bay flew to local makers due to hard allocation of ships from Tokyo bay. Moreover, scrap dealers accelerated its shipping due to anticipation of a fall. Each electric maker reduced the purchasing price by degree due to increased purchase volume. Their purchasing price decreased by about 5,000 yen per tonne for a one and half month period. The export price to East Asia has been decreased. In reversal, the export price signaled a rebound from last week. Hyundai Steel in South Korea didn’t change the purchasing price of Japanese ferrous scrap in 28 November. Japanese ferrous scrap price is comparatively cheap for overseas steel makers due to higher freight price. Steel makers in Taiwan or China are offering to Japanese ferrous scrap. Their offer prices are higher than the purchasing price of Japanese electric furnace makers.