Japan Ferrous Scrap Price to Hit Bottom

Japanese ferrous scrap market price shows sign to hit bottom when the export transaction increases for East Asia at FOB 24,000 yen per tonne for H2 grade for South Korea. The export contract is apparently 100,000 tonnes level recently from Japan while the export was slow in September. The higher export transaction slows down the domestic price decrease. The price could rebound around Tokyo when the exporters try to secure scrap competing with higher purchase price by local electric furnace steel makers.

Electric furnace steel makers around Tokyo pay 21,000-23,000 yen per tonne for H2 grade scrap. Tokyo Steel Manufacturing reduced the scrap purchase price by 500 yen per tonne at all plants including Utsunomiya plant on Friday. Some other steel makers around Tokyo followed the move but some dealers expect the price could rebound due to tight supply. The supply is still tight when the exporters will ship 16,000 tonnes for contract through export tender held by Kanto Tetsugen earlier the month.

Electric furnace steel makers around Osaka pay 23,000-25,000 yen per tonne for H2 scrap. The makers have reduced the price since mid-September as Tokyo Steel’s move. However, some makers kept relative higher price even after Tokyo Steel’s price down on Friday. The scrap dealers see the makers are cautious for further price down when exporters start the shipment on Monday for existing orders.