Tokyo Steel Reduces Scrap Purchase Price at Okayama

Tokyo Steel Manufacturing decreased the ferrous scrap purchase price by 500 yen per tonne both for land and ocean transport at Okayama plant on Friday. The drop is the first decrease at the plant since December 23. The price decreased to 28,500 yen per tonne for ocean transport and to 28,000 yen for land for H2 grade. Ferrous scrap 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. Local market price is likely to keep weak when electric furnace steel makers around Tokyo plan output reduction after July for seasonal maintenance. The scrap supply is more than the consumption around Tokyo when less appetite by electric furnace steel makers in South Korea and Taiwan reduces new export order from Tokyo bay. Local electric furnace steel makers pay 26,000-27,000 yen per tonne for H2 under weak market leader of export FAS price from Tokyo bay.