Lower Ferrous Scrap Price in Osaka

Ferrous scrap market price decreased again around Osaka. Local electric furnace steel makers reduced the purchase price to 38,500-40,000 yen per tonne for H2 grade, which is 1,000 yen lower than recent peak. The price decreases when Tokyo Steel Manufacturing reduced the purchase price and offshore buyers have less appetite. The scrap supply from other areas increases while the local scrap supply is till low level. Osaka Steel reduced the scrap purchase price by 500 yen per tonne for other than new cutting grade at Sakai and Okajima plant on Friday. Kyoei Steel reduced the price by 1,000 yen for H1 and by 500 yen for other grade at Hirakata plant, Osaka and Godo Steel reduced the heavy scrap purchase price by 500 yen at Osaka plant on Saturday. Kishiwada Steel also reduced the purchase price by 500-1,000 yen per tonne on Thursday and reduced the price by 1,000 yen for steel turning scrap on Monday. Nakayama Steel Products reduced the price by 500 yen on Monday. Slower building activity reduces demand for steel products. Concrete reinforcing steel makers reduce the output by 10-20% from a year earlier level. Local electric furnace steel makers pay around 1,000 yen per tonne higher than makers in other areas. The higher price attracts scrap supply from other areas.