Japan Ferrous Scrap Price Continues to Drop by 1,500 Yen/t

Japanese ferrous scrap market price lowered by 1,000-1,500 yen per tonne on Thursday. Electric furnace steel makers’ purchasing price decreased by 3,000-3,500 yen to 33,000-34,000 yen per tonne for H2 grade from last week. Some pay as high as 34,500 yen. Ferrous scrap export maintains inactive for East Asia. A scrap dealer said the market price would keep downtrend unless new export contracts increase largely.

Export contract price is currently FOB 33,000-34,000 yen per tonne for H2, lower by 4,000-5,000 yen than in mid April. South Korean steel makers are presently purchasing Japanese ferrous scrap but price negotiations are hard when won exchange rate is weakening and Japanese market price is likely to continue downward.

Electric furnaces around Tokyo lowered their purchasing price by 1,000-1,500 yen per tonne on Thursday. Local scrap demand is expected to increase compared with May but, a scrap dealer source said, the supply and demand balance wouldn’t tighten due to inactive export from Tokyo Bay.

Electric furnaces around Osaka also decreased their purchasing price on Thursday. Their purchase price lowered to 33,000-34,000 yen per tonne for H2.