Japan Ferrous Scrap Price to Remain Weak

Japanese ferrous scrap market price continues decreasing due to slower export and major earthquake damage. Electric furnace steel makers’ purchase price is 1,000-2,000 yen per tonne lower than a week earlier level. The price is 35,000-37,000 yen for H2 grade around Tokyo, 36,500-37,000 yen around Nagoya and 38,000-39,500 yen around Osaka. Mixed price trend in each area increase the price gap between the areas.

Electric furnaces around Tokyo reduced ferrous scrap purchase price one after another since last week when they have stopped or decrease the purchase volume since March 11 when the earthquake occurred. The export price is 1,000-2,000 yen lower than the local makers’ purchase price. The dealer sources expect the market price would remain weak.

The dealers’ scrap shipment slows around Nagoya when local electric furnaces reduced the purchase price late last week. The demand is also weak for export. However, the supply would get tight due to limited supply when many automakers and automotive parts makers stop the operation.

Most of electric furnaces around Osaka reduced the scrap purchase price last week. Trading firm source expects the price continues decreasing due to lower export price in March while most of market sources see the price would rebound in short term.