Japan Ferrous Scrap Hits Lowest Price since Early Dec in Tokyo

Japanese ferrous scrap market price is decreasing. Some electric furnace steel makers reduced the scrap purchase price to less than 30,000 yen per tonne for H2 grade around Tokyo while the price is already less than 30,000 yen in Nagoya and Osaka. Japanese largest electric furnace steel maker, Tokyo Steel Manufacturing reduced the purchase price at all plants on Thursday under oversupply of scrap. Other steel makers followed the price cut by Tokyo Steel.

Local electric furnaces’ ferrous scrap purchase price is 29,500-30,500 yen per tonne for H2 grade around Tokyo while some makers pay around 31,000 yen. Most of local electric furnaces reduced the price by 500-1,000 yen on Thursday when Tokyo Steel reduced the price at Utsunomiya plant on the same day. The price is the lowest level since early December.

Local exporters’ scrap purchase price decreased to around FAS 28,000 yen per tonne for H2 grade around Tokyo bay. The exporters reduced inventory when shipping decreased for western Japan and export due to Chinese New Year holiday. An industry source sees the shipping for western Japan decreased due to lower price in western Japan compared with the price around Tokyo.

The scrap market price is also decreasing around Osaka. Local electric furnaces’ purchase price is 28,500-29,000 yen per tonne for H2 grade while some makers pay around 29,500 yen. The electric furnaces reduced the price on Thursday to follow price cut by Tokyo Steel. The price decreased by 500-1,000 yen and some makers reduce or stop the scrap buying. One dealer source sees local integrated steel makers reduced the scrap buying from market cooling local demand.