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

Japanese ferrous scrap market price continues lowering. Purchasing price by domestic electric furnace steel makers is 36,500-38,000 yen per tonne for H2 grade, down by 1,000-1,500 yen from last week. Electric furnaces are decreasing the purchase price around Tokyo and Osaka to reflect easier supply and demand balance. Newly contracted export price lowered when export shipment slowed down.

Electric furnaces around Tokyo presently pay 36,500-37,000 yen per tonne for H2 and some pay as high as 37,500 yen. They lowered the purchase price by 500-1,000 yen this week. Scrap dealers are increasing the shipment to local steel makers when export is slow. Some makers are regulating the procurement volume. A dealer source said scrap market price may drop more. Newly contracted export price is FOB 35,500 yen per tonne, lower by 1,000 yen than last week and than local makers’ purchase price.

Around Osaka, electric furnaces purchase H2 at 36,500-38,000 yen per tonne, down by about 3,000 yen from the beginning of this month. They reduced the purchase price at the end of last week or the beginning of this week. Tokyo Steel lowered the purchase price by 500 yen on Wednesday and some makers around Osaka followed the price cut by 500 yen.

In the region, Kishiwada Steel is suspending furnace operation and scrap shipment from local quays is weak for both of export and domestic integrated steels. Special steel makers keep high production ratio and Nippon Steel’s Oita works is expected to increase scrap procurement in or after June. But, a large dealer prospects, the market price maintains a weak tone for a while.