Japan Ferrous Scrap Market Remains Uncertain

Ferrous scrap market price is flat at around 32,500 yen per tonne for H2 grade, 34,300 yen for H1 grade and 36,000 yen for HS grade at the dealers’ purchase price including freight around Tokyo. Local electric furnace steel makers’ purchase price is 38,000-39,000 yen for H2 grade, which is 1,000 yen lower than last week, and some makers pay around 39,500 yen.

Most of the dealers around Tokyo reduced ferrous scrap purchase price when local electric furnaces reduced the price. The market trend is unforeseeable when both the dealers and electric furnaces are affected by earthquake in eastern Japan.

Ferrous scrap market price is also flat around Osaka. The price is around 31,500 yen per tonne for H2 grade at the dealers’ purchase price including freight. Local electric furnaces’ purchase price is 39,500-40,500 yen for H2 grade.

Market sources expect ferrous scrap supply gets tight in and after three days holiday weekend through March 21. However, the market trend is unforeseeable due to the major earthquake. Some electric furnaces around Tokyo stopped the scrap purchasing and electric furnaces around Osaka could ship its products to cover lower production in eastern Japan, according to trading firm source. The market price is unforeseeable, the source said.