Japan Ferrous Scrap Price Levels Off

Japanese ferrous scrap market price levels off at 24,500-26,000 yen per tonne for H2. Some electric furnace steel makers reduced their scrap purchase price to reflect scrap dealers’ shipment increase to makers. A dealer source said ferrous scrap price doesn’t decrease largely when Chinese and South Korean steel makers are increasing scrap procurement from Japan though domestic demand is decreasing.

Electric furnaces’ purchase price keeps flat at 24,000-25,000 yen per tonne around Tokyo compaed with the previous weak and some pay as high as 25,500 yen. Scrap dealers’ inventory is low in the region. On the other hand, export shipment continues. A dealer source said ferrous scrap inventory doesn’t increase with slow scrap generation.

Electric furnaces around Osaka purchase H2 at 24,500-26,000 yen per tonne. Some makers had paid higher price than standard price in the area. But dealers’ shipment increased to makers when dealers expected the market price rises. Osaka Steel and Kishiwada Steel reduced the purchase price by 500-1,000 yen on November 20th, lowered for the first time in one month.