Weak Ferrous Scrap Price in Tokyo

Ferrous scrap market price keeps 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 supply gets easier than consumption when local electric furnace steel makers reduce the output due to planned maintenance. With the oversupply, the market price is expected to keep weak. The industry interests watch coming export tender by Kanto Tetsugen for September shipment. Local scrap generation is slow and is expected to keep slow. However, scrap dealers try to ship the holding scrap as early as possible with expectation for lower price when local electric furnaces decrease the consumption. With higher supply, local electric furnaces’ scrap inventory increases. Local steel makers pay 25,500-26,000 yen per tonne for H2. Utsunomiya plant of Tokyo Steel Manufacturing keeps the purchase price even after the firm reduced the price at Okayama and Kyushu plants in the month. Scrap shipping price from Tokyo bay is weak at FAS 25,500-26,500 yen per tonne for H2 under slower demand from steel makers in Taiwan and China along with higher foreign exchange yen rate. However, the price is expected to keep the level when exporters keep shipping for higher priced order backlog.