Japan Ferrous Scrap Purchase Price by Steel Makers is Below 30,000 y/t

Japanese electric furnace makers’ purchase price of ferrous scrap was below 30,000 yen per tonne since the first half of February, which decreased to 29,000-30,000 yen per tonne for H2 by 3,000-5,000 yen from last week when ferrous scrap export grows stagnant to East Asia. A dealer source said ferrous scrap price continues to drop when there is reason to rise.

The purchase price decreased to 29,000-30,000 yen by 4,000-4,500 yen for H2 around Tokyo and some pay as high as 30,500 yen. Most makers reduced the purchase price from Thursday following Wednesday when export price is decreasing and export shipment hovers at a low level.

Ferrous scrap export successful bit was averaged FAS 28,070 yen per tonne for H2 grade at the monthly tender for July shipment held by Kanto Tetsugen on Wednesday, which was lower than local makers’ purchase price around Tokyo. Consequently, dealers forecast ferrous scrap market price drops in the future.

The market price is starting to be below 30,000 yen per tonne for H2 due to reduction of makers’ purchase price around Osaka. The purchase price decreased to 29,000-30,000 yen per tonne by 10,000 yen for H2 for a month around Osaka.

Electric furnace makers reduced the purchase price by 2,000 yen from Thursday and some makers reduced by 3,000 yen. The demand of ferrous scrap is firm for integrated steel makers and special steel makers. However, ferrous scrap export hovers at a low level. A dealer source said the market price isn’t expected to stop decrease.