Weak Ferrous Scrap Market in Tokyo

Ferrous scrap market price is weak at around 27,000 yen per tonne for H2 at dealers’ purchase price including freight around Tokyo. The price downed by 2,000-2,500 yen compared with early May. Local electric furnace steel makers pay around 32,500-33,500 yen per tonne for H2 and some pay as high as 34,000 yen.Dealers hasten to ship their ferrous scrap inventories when the market price is decreasing. Ferrous scrap export keeps slow and local scrap supply is easy.Overseas market price is in the wait-and-see situation. Ferrous scrap composite price in USA keeps flat. South Korean makers increased purchasing volume of ferrous scrap from Japan due to supply tightness in domestic market.Hyundai Steel of South Korea offered around FOB 34,500 yen per tonne for Japanese H2 scrap at the weekly tender on last Wednesday. The price was almost same compared with Japanese makers’ current purchasing price.Japanese ferrous scrap market price is expected to weaken due to local supply abundance.