Japan Ferrous Scrap Composite Price Downturns after 4 and Half Months

Japan Ferrous Scrap Composite Price, which is an averaged purchase price by scrap dealers in Tokyo, Osaka and Nagoya, downturned for the first time in 4 and a half months. The price decreased by 300 yen to 29,600 yen per tonne for H2 grade and by 400 yen to 34,100 yen per tonne for cutting press last week compared with the previous week. The market price lowered around Osaka.

In Tokyo, H2 market price stays flat at around 32,500 yen per tonne for a month. Ferrous scrap export from Tokyo Bay has slowed down since last month. Scrap arrivals are gradually increasing at local electric furnace steel makers. However, a dealer source said steel makers consumed ferrous scrap stocks during long holidays in early May and scrap supply wouldn’t ease for a while. Local steel makers currently pay 38,000-38,500 yen for H2 and some pay as high as 39,000 yen.

Around Osaka, H2 market price downturned at the end of last week and became around 31,000 yen. Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, reduced the purchase price on Friday. Other makers around Osaka lowered the purchase price, too. Local makers pay 39,000-40,000 yen per tonne for H2. The market price is expected to edge downward while, a large dealer source said, scrap dealers may increase the inventories if the market price drops.