Flat Ferrous Scrap Price in Tokyo, Osaka

Ferrous scrap market price is flat with weak tone at around 23,000 yen per tonne for H2 grade, 24,800 yen for H1 grade and 26,500 yen for HS grade at the dealers’ purchase price including freight around Tokyo. Local electric furnace steel makers’ purchase price is 28,000-29,000 yen for H2 grade same as last week while some makers pay around 29,500 yen.

The scrap supply to the dealers remains low when the generation decreases. The market price could decline in late August due to the outage by local electric furnaces. The dealers keep the purchase price unless electric furnaces change the price.

Ferrous scrap market price around Osaka is flat with potential weakness. The price is around 19,000 yen per tonne for H2 grade at the dealers’ purchase price including freight while local electric furnaces pay 26,500-28,000 yen for H2 grade.

The market price would not increase due to the demand slowdown in construction steel and higher yen exchange rate while the price showed sign of rebound in US and South Korean market.

On the other hand, the supply to the dealers remains low. Despite the weak tone, some electric furnaces would purchase the scrap at spot basis in early August when the scrap inventory decreases, a dealer source said.