Tokyo, Ferrous Scrap Purchasing Price Down

Ferrous scrap purchasing price by electric furnace steel makers decreased around Tokyo for the first time in 4.5 months. Some makers reduced the price this week. The current price is around 38,500-40,500 yen per tonne for H2 grade and some makers pay as high as 41,500 yen. The shipment from Tokyo bay maintains slow and most ferrous scrap is flowing into local electric furnaces.The export contracts from Tokyo bay have decreased since mid September due to the upsurge of local makers’ scrap purchasing price. Ferrous scrap shipment flowed to local electric furnaces as a result. The makers increased their scrap inventory since they concentrated their operations in three-day weekend for 6-8 October.Some makers reduced the purchasing price after the weekend. However, integrated steel makers are now active to purchase ferrous scrap in demand season of autumn. The market price is unlikely to down largely.