Japan Ferrous Scrap Market Price Lowers for 2 Weeks

Japanese ferrous scrap market price lowered for 2 weeks in a row. Electric furnace steel makers’ H2 purchasing price decreased by 500-1,000 yen to 37,000-39,000 yen per tonne including freight from last week. Scrap arrivals are increasing at steel makers when scrap export grows stagnant. Newly contracted export price is presently lower than domestic electric furnaces’ purchase price. The market price is likely to maintain weak tone.

Electric furnace steel makers around Tokyo purchase H2 at around 37,000-37,500 yen per tonne and some pay as high as 38,000 yen. Local makers including Tokyo Steel reduced the purchase price by 500 yen on Friday. The price lowered by 1,000-1,500 yen from the recent peak in late April. Newly contracted export price is FOB 36,500-36800 yen, lower than the domestic market price. A dealer source said South Korean and other offshore steel makers are reducing scrap orders.

Electric furnaces around Osaka pay 37,000-39000 yen per tonne for H2. Three electric furnaces in Himeji area lowered the purchase price after Tokyo Steel’s price cut. A large dealer source said other makers may reduce the purchase price sooner or later when Kishiwada Steel schedules a furnace suspension from May 24. Local electric furnaces decreased the price by 500 yen. Another scrap dealer prospects the market price keeps downward trend when overseas market price is backwater.