Lower Japan Ferrous Scrap Price

Japanese ferrous scrap market price decreased additionally due to lower export price to East Asia. Electric furnace steel makers pay 38,000-39,000 yen per tonne for H2 grade scrap, which is 1,000 yen lower than previous week. Scrap price decreased around Tokyo for the first time in around 4 and half months while scrap price around Osaka already decreased in February. The dealers see the price is uncertain despite the down due to firm domestic demand and some sign for recovery in offshore market.

Japanese scrap export price is around FOB 38,000 yen per tonne for H2 grade to East Asia, which is 1,000-1,500 yen lower than recent peak in mid-February. South Korean buyers try to secure Japanese scrap but the export transaction is thin when the export price is still lower than Japanese steel makers’ purchase price.

Electric furnace steel makers around Tokyo reduced the scrap purchase price for the first time in around 4 and half months under the slow export market. They pay 38,000-39,500 yen per tonne for H2 grade scrap. They reduced the purchase price after the small adjustment for some case. However, some dealers expect the scrap price would rebound soon when US scrap export price rebounded to Turkey buyers.

Electric furnace steel makers around Osaka pay 39,500-40,500 yen per tonne for H2 grade scrap. Tokyo Steel Manufacturing cut the purchase price and other makers reduced the price. Kishiwada Steel and Nakayama Steel Products reduced the price by 1,000 yen for turning scrap and by 500 yen for other grades. Godo Steel’s Osaka plant reduced the price by 500 yen. Yamato Steel, JFE Bars & Shapes and Godo Steel’s Himeji plant reduced the price by 1,000 yen.

The makers around Osaka already started the downward adjustment in early March but they could increase the scrap purchase volume toward 3 days weekend holiday. The spot purchase increase could support the local market price along with tight supply for heavy grade scrap around Osaka.