Ferrous Scrap Market Price to Drop in Tokyo, Osaka

Ferrous scrap market price is weak in Tokyo and Osaka under slower demand both from domestic steel makers and offshore users. The market price is around 18,500 yen per tonne for H2 grade at the dealers’ purchase price around Tokyo and around 17,500 yen around Osaka. Local electric furnace steel makers’ purchase price is 27,000-28,000 yen for H2 grade in Tokyo and Osaka.

Local dealers’ scrap purchase price decreased by around 4,000 yen per tonne for H2 grade in Tokyo from late May. The price is around 6,000 yen lower than the recent peak in early April. A market source sees the scrap supply is decreasing from manufacturers but local makers’ purchase is slow.

Local makers reduced scrap purchase price around Osaka by Wednesday. One dealer source sees the supply decreases for local steel makers due to shipping for export but the price would keep decreasing. The export price also decreased for East Asia under international weak market. A trader source sees the market would be tough for Japanese exporters due to higher yen exchange rate.