Tokyo Steel Lowers Ferrous Scrap Purchase Price by 500 y/t

Tokyo Steel Manufacturing reduced the purchase price of ferrous scrap by 500 yen per tonne to 30,500 yen for all grade in Utsunomiya works on Saturday. The purchase price is 30,000 yen per tonne in Okayama works, 30,500 yen in Kyusyu works, 29,500 yen in Takamatsu works and 29,500 yen in Tahara works.

The ferrous scrap market price is weak at 21,500 yen for H2 for delivery to dealers around Tokyo, 23,300 yen for H1 and 25,000 yen for HS. Local electric furnaces purchase H2 grade at 29,500-30,500 yen around Tokyo and some pay as high as 31,000 yen.

The ferrous scrap yield is increasing slightly around Tokyo, according to one dealer source. The yield from manufacturing plants is firm while the yield from dismantled buildings also shows stable. Scrap consumption by local electric furnaces maintains flat. On the other hand, scrap shipment to other areas is low. The supply and demand balance seems totally surplus.