Lower Japan Ferrous Scrap Price

Tokyo Steel Manufacturing reduced the ferrous scrap purchase price by 500 yen per tonne at all plants on Saturday. The price decreased to 41,500-41,250 yen per tonne for H2 grade at Okayama, 42,000-43,000 yen at Kyushu, 41,000 yen at Takamatsu and 40,000 yen at Utsunomiya. Electric furnace steel makers reduced the scrap purchase price again last week. They pay 38,000-39,000 yen per tonne for H2 grade and some makers pay as high as 40,000 yen. They can secure materials enough to the operation under slower export from Tokyo bay. The dealers around Tokyo try to liquidate the inventory. Local steel makers reduced the scrap purchase price by 1,000-2,000 yen per tonne. Some dealer sources expect the drop is temporally and lower price could attract offshore buyers.