Japan Steel Scrap Composite Price Downturns after 5 Weeks

Japan Steel Scrap Composite Price downturned after 5 weeks in Tokyo, Osaka and Nagoya. The price decreased by 500 yen to 20,900 yen per tonne for H2 grade and by 500 yen to 25,500 yen per tonne for new cutting press in the first week of July from the previous week.

In Tokyo, scrap market price decreased by 500 yen to around 23,500 yen per tonne for H2. Local electric furnace steel makers purchase H2 at 28,500- 29,500 yen and some pay as high as 30,000 yen. Some electric furnaces lowered purchase price and ferrous scrap export price declined at Tokyo Bay. Then most scrap dealers decreased their scrap purchase price. Scrap arrivals maintain very low at scrap dealers’ sites. The supply keeps relatively tight.

In Nagoya, scrap dealers’ purchase price is presently around 17,800 yen per tonne for H2. Local electric furnaces pay 27,500-28,500 yen for H2 and 34,000-35,000 yen for new cutting scrap. Some electric furnaces reduced purchase price to follow Tokyo Steel’s price cut on Friday.

Supply and demand balance is loosing for heavy scrap when Tahara iron works of Tokyo Steel stopped scrap procurement for inventory adjustment. Meanwhile the supply keeps tight for new cutting scrap when integrated steel makers in other areas purchase scrap from Nagoya area or local special steel makers maintains high output.

Around Osaka, scrap dealers’ purchase price lowered by 1,000 yen to 21,500 yen per tonne for H2. Local electric furnaces pay 29,000-30,500 yen for H2. Many electric furnaces reduced scrap purchase price when Osaka Steel lowered the price on last Wednesday. Most dealers downed the purchase price by 1,000 yen. A dealer source said the market price continues gradual decline if scrap demand and generation stay at low level.