Japan Ferrous Scrap Price Maintains Downtrend

Japanese ferrous scrap market price maintains downtrend. Electric furnace steel makers’ purchasing price decreased by 2,000-3,000 yen per tonne this week, which lowered to 34,000-35,000 yen per tonne around Tokyo and to 37,000-38,500 yen around Osaka for H2 grade. In Kanto area, steel makers are decreasing outputs along TEPCO’s power outage plan. Thus steel makers’ demand for ferrous scrap declined and the local market price downed to around 35,000 yen for the first time in 3 months.

Electric furnaces around Tokyo pay 34,000-35,000 yen for H2 and some pay as high as 35,500 yen. The local price lowered by 4,000-5,000 yen from the recent peak at the end of February. Scrap demand is decreasing rapidly after Tohoku-Kanto Earthquake. Additionally, scrap export from Tokyo Bay grew stagnant to East Asia with few new contracts. There is no positive factor to push up local scrap market price, according to regional dealers.

Around Osaka, electric furnaces purchase H2 at around 37,000-38,500 yen. JFE Bars & Shapes’ Himeji works and Sanyo Special Steel reduced their purchasing prices by 1,000 yen on Friday. On the other hand, local steel makers are expected to increase steel output and scrap procurement in or after April mainly for alternate production for East Japan. Some dealers are starting to increase scrap inventory, according to a dealer source.