Weak Ferrous Scrap Price in Tokyo, Osaka

Ferrous scrap market price would decrease from 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. The dealers expect the market price would decline more when the export price is lower than the local electric furnace steel makers’ purchase price.

Local electric furnace steel makers’ purchase price is 28,000-29,000 yen per toonne for H2 grade and some makers pay around 29,500 yen around Tokyo. The electric furnaces steel makers’ purchase price declined by 500-1,000 yen per tonne from the beginning of the month when the export volume decreased.

The dealers’ ferrous scrap purchase price is around 19,500 yen per tonne for H 2 grade around Osaka and local electric furnaces steel makers’ purchase price is 27,000-28,000 yen while some makes pay 28,500 yen. Osaka Steel reduced H2 grade purchase price by 1,000 yen and Kishiwada Steel also reduced the purchase price by 500 yen from Friday. The market sources expect the export price increases when U.S composite price rebounded and Japanese exporters increased the offer price to East Asia.