Japan Ferrous Scrap Market Price Turns Down

Ferrous scrap market prices turned down in Tokyo and Osaka for the first time in a month. Scrap supply is easing to domestic electric furnace steel makers since Japanese scrap export price to East Asia hit the ceiling in April, one scrap dealer said. , Japanese largest electric furnace steel maker of Tokyo Steel Manufacturing cut its scrap purchasing price on Tuesday and other electric furnaces followed the price reduction.

Electric furnace steels around Tokyo paid 32,500-33,500 yen per tonne for H2 grade as of Thursday. Most electric furnaces except for Tokyo Steel’s Utsunomiya works reduced the purchasing prices by 500 yen on Thursday.

Scrap exporters around Tokyo Bay paid FAS 31,500-32,500 yen for H2 as of Thursday. The purchasing price lowered by 500-1,000 yen in April. The exporters show weak appetite for new procurement since they finished necessary deliveries for current contracts. Successful bid price at Kanto Tetsugen’s latest export tender on Wednesday was FAS 32,650 yen, which was 168 yen higher than the previous tender on March 9. However, one local scrap dealer suggested the tender might reflect the high price of previous contracts.

Around Osaka, electric furnace steel makers pay 33,000-34,000 yen for H2 grade and some pay as high as 34,500 yen. Some of them lowered the purchasing prices on Tuesday while Tokyo Steel implemented additional price cut on Thursday. Other electric furnaces in Osaka and Himeji areas followed the price down by 500 yen. The market price downturned for the first time in a month.