Japan Ferrous Scrap Price Decreases due to Low Demand

Japanese ferrous scrap market price turned into downward trend when the demand is expected to decrease in non-demand season when electric furnace steel makers carry out periodic repair in July-August, and ferrous scrap export grows stagnant to East Asia. Because Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, reduced purchase price of ferrous scrap by 500 yen per tonne in all works from Saturday, other steel makers are reducing purchase price all over the country.

Local steel makers’ purchase price is 34,500-35,500 yen per tonne for H2 grade on Monday around Tokyo. Many steel makers reduced purchase price by 500 yen from Saturday.

The purchase price turned into drop when export price hit ceiling which had been pulled up market price until the first half of this month. The export price decreased by around 500 yen to FAS 35,000 yen from Tokyo bay in this week from last week. The shipping price decreased to western Japan, too. One large dealer source said local makers can stock up on ferrous scrap enough because ferrous scrap shipment is increasing from Tohoku area.

The purchase price by local electric furnace steel makers is 36,500-37,500 yen per tonne for H2 grade around Osaka. Yamato Steel, Himeji works of JFE Bards & Shapes and Himeji works of Godo Steel reduced purchase price by 500 yen per tonne from Saturday.

In this week, other steel makers passed on purchase price cut. One dealer source said each steel maker decreased purchase volume before log holidays from Saturday. Other dealer source said steel makers decrease purchase price when steel products market price grows stagnant, and ferrous scrap export price was below FAS 35,000 yen per tonne.