Japan Ferrous Scrap Market Price Downs by 200 Yen/t in June 1st Week

Japan Steel Scrap Composite Price, which is an averaged purchase price of scrap dealers in Tokyo, Osaka and Nagoya, continued to decrease in the first week of June. The price downed by 200 yen to 27,100 yen per tonne for H2 grade and downed by 200 yen to 31,800 yen per tonne for new cutting press.

Around Tokyo, the price decreased by 500 yen to around 28,000 yen for H2. Local electric furnace steel makers’ scrap purchase price was 33,500-34,500 yen and some paid as high as 35,000 yen as of Friday. The market price is lowering slowly when dealers’ export negotiations restarted. Regional supply and demand balance still maintains loose.

Around Nagoya, dealers’ purchasing price is 36,500-37,000 yen for H2 and some pay as high as 42,000 yen for new cutting scrap. One dealer said ferrous scrap generation volume is estimated at 70% in June compared with pre-disaster level and expected to increase to around 90% in or after July. Local special steel makers continue high operations while electric furnace carbon steel makers’ operating rate is around 70%.

Around Osaka, dealers’ purchasing price is 27,000 yen for H2.