Ferrous Scrap Price Drops by 500 yen around Tokyo

Utsunomiya plant of Tokyo Steel Manufacturing increased the ferrous scrap purchase price by 500 yen per tonne except for turning scrap on Friday. The reduction, in which the price decreased to 26,500 yen per tonne for H2 grade, is the first time since December 23. The local market price is weak at 18,500 yen per tonne for H2, 20,800 yen for H1 and 22,500 yen for HS at dealers’ purchase price including freight around Tokyo. The local electric furnace steel makers could reduce the purchase price when they reduce the consumption under planned maintenance outage. The prices could decrease more under the depressing market. Local electric furnace steel makers pay 25,500-26,000 yen per tonne for H2 grade and some pay as high as 27,000 yen. The makers apparently get enough scrap arrivals to the consumption.