Japanese Ferrous Scrap Price to Start Weak Tone at 22,000-22,500 Yen

The Japanese ferrous scrap market price in the beginning of this year started the weak tone because the consumption volume of ferrous scrap is decreasing because production adjustments by electric furnace steel manufacturers and the ferrous scrap export is dull. The electric furnace steel manufacturers in the Tokyo and Osaka area, which is Eastern and Western Japan respectively, are reducing the purchase price of ferrous scrap by 500 yen per tonne or are stopping to purchase it. It is expected that the purchase price of ferrous scrap by electric furnace steel manufacturers will be the weak tone since the export whose functions as the adjustment continues low tone.The purchase price of the scrap by the electric furnace steel manufacturers in Tokyo is at 22,000-22,500 yen per tonne for H2. Each electric furnace steel manufacturers increased the stock of ferrous scrap before the operation for 3 consecutive days of January 7-9. However, they purchased it more than quantity consumed; the move was spread that they decreased the purchase price or stopped the purchase.There is every possibility that scrap price decreases by the supply and demand will be easing since ferrous scrap buying will of offshore steel manufacturers isn’t recovering. The South Korean ferrous scrap market started to be the weak tone, too. Changwon Specialty Steel which is special steel electric furnace manufacturer in the southern part of the nation reduced the purchase price of ferrous scrap by 10,000 won per tonne from January 2 because domestic demand is dull and the import scrap has good conditions. Hankuk Steel & Mill decreased the scrap by 10,000 won per tonne from January 9. YK Steel or Deahan Steel Mill will reduce it after this week, too.In the South Korean steel market, the demand of the reinforced steel bars in 2005 for the major 7 steel manufacturers decreased to 8.96 million tonnes by 18% over the previous year. The import products from China, etc. are increasing. The leading steel manufacturers in South Korea build up the decreased production of the reinforced steel bars and shift to other steel products.