Ferrous Scrap Price Drops around Osaka

Ferrous scrap market price dropped around Osaka for the first time since August 2006. Local electric furnace steel makers reduced the scrap purchase prices after the price increased by 7,000 yen per tonne from the beginning of the year. The price could decrease more depending on the market. Some local makers reduced the scrap purchase prices by 500-1,000 yen per tonne on Wednesday. The averaged purchase price level decreased by 250 yen to 38,000-39,000 yen per tonne for H2 grade. The makers secured the requirement through purchase from Tokyo area. Ferrous scrap market price is still flat around Tokyo. Local steel makers pay 35,500-36,000 yen per tonne for H2 and some pay as high as 37,000 yen. They get smooth scrap arrivals from dealers. Local steel makers could reduce the purchase price when they don’t need build scrap inventory as last month. Kanto Tetsugen holds monthly scrap export tender on May 10. The scrap group expects 10,000-20,000 tonnes of contract. The averaged successful bid was FAS 36,260 yen per tonne at previous tender, which was record price since the start of the tender.