Lower Ferrous Scrap Price in Tokyo

Electric furnace steel makers around Tokyo reduce the ferrous scrap purchase prices. The purchase price is 34,500-35,500 yen per tonne for H2 grade and some pay as high as 36,000 yen. Scrap export shipping from Tokyo bay keeps low level due to weak offshore market. The scrap flow diverts to local electric furnaces and the makers get smooth scrap arrivals enough to the consumption. Some local steel makers reduced the scrap purchase price in the week after the drop last week. The purchase price decreased by 500-1,000 yen per tonne in the month. The market price is weak due to expectation for slower export shipping. However, some interest see the demand keeps firm due to higher steel makers’ output and scrap price could keep the high level without major drop. Ferrous scrap market price also dropped around Himeji area in Hyogo. Tokyo Steel Manufacturing reduced the scrap purchase price by 500 yen per tonne at all plants. Other local electric furnace steel makers followed the move.