Japan Steel Scrap Composite Price Decreases by 1,000 yen/t

Japan steel scrap composite price, which are averaged ferrous scrap market price in Tokyo, Nagoya and Osaka, decreased by 1,100 yen to 26,300 yen for H2 grade and 1,400 yen to 29,600 yen for new cutting press last week from the previous week.

Ferrous scrap market price decreased by 500 yen to around 28,000 yen per tonne for H2 grade at dealers’ purchase price around Tokyo last week. Local electric furnace steel makers’ purchase price decreased by 500 yen to 33,500-34,500 yen for H2 grade by local electric furnace steel makers around Tokyo on Monday.

Many local electric furnaces reduced the scrap purchase price and many dealers followed the price reduction by electric furnaces. Scrap export price hovers at low around Tokyo bay and the price is lower than local electric furnaces’ purchase price. One dealer source said dealers’ sale destination decreases when electric furnace steel makers stop output due to maintenance outage.

Ferrous scrap market price decreased by 1,000 yen to 24,800 yen for H2 grade at the dealers’ purchase price around Nagoya last week. Local electric furnaces’ purchase price is 34,500-35,000 yen for H2 grade and the makers pay around 38,500 yen for new cutting press. The scrap price is relatively high due to high yen exchange rate. The supply and demand is easing for mainly new cutting scrap and steel turning scrap. Local steel makers continues reducing purchase price. Consequently, the market price is expected to be weak tone after Bon Holiday.

The market price is around 26,500 yen for H2 grade same as last week at the dealers’ purchase price around Osaka. Local electric furnaces’ purchase price is 35,500-36,500 yen for H2 grade.