Japan Ferrous Scrap Market Price Declines to 30,000 Yen/t

Ferrous scrap market price continuously declined around Tokyo and Osaka. The price is approaching 30,000 yen per tonne at the purchasing price by electric furnace steel makers for H2 grade. Scrap dealers activated inventory shipment in January and scrap delivery increased at electric furnaces. Moreover, integrated steel makers are reducing the purchase volume. Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, lowered its scrap purchasing price on Wednesday. One large dealer source said South Korean steel makers may decrease offer prices for Japanese ferrous scrap under the situation.

Around Tokyo, electric furnaces paid 31,000-32,000 yen per tonne for H2 as of Wednesday. Most steel makers including Utsunomiya works of Tokyo Steel reduced the purchase price by 500 yen on Wednesday. Some steel makers are decreasing the procurement volume. Scrap shippers around Tokyo Bay lowered the purchasing price by 500-1,000 yen to 29,500-30,000 yen for H2 this week. Some pay as high as 30,500 yen. The latest export contract price with South Korean importers declined to FOB 31,500 yen per tonne.

Around Osaka, electric furnaces purchase H2 at 30,000-31,000 yen. They decreased the purchase price by 500 yen in Osaka and Himeji areas on Wednesday. The price cut was implemented for two days in a row in Osaka. Local scrap dealers accelerated inventory shipment when the market price downturned though scrap dealers’ joint export shipment is scheduled at the end of January. One dealer source analyzed price down seems earlier in Osaka than in other areas due to inventory increase at electric furnaces.