Tokyo Steel Cuts Ferrous Scrap Purchase Price by 500 yen

Tokyo Steel Manufacturing announced on Thursday the firm reduces ferrous scrap purchase price by 500 yen per tonne for ocean transport and land transport to all plants on Friday. The revised price for H2 grade is 23,500 yen at Okayama plant, 23,000 yen at Kyushu plant, 22,500 yen at Takamatsu plant and 21,500 yen at Utsunomiya plant.

Ferrous scrap price is flat around Tokyo. The dealers’ purchase price is around 15,000 yen per tonne for H2 grade, 16,800 yen for H1 grade and 18,500 yen for HS grade including freight. Local electric furnace steel makers’ purchase price is 21,500-23,000 yen for H2 grade while higher price is around 23,500 yen. The price of local electric furnace steels decreased the purchase price by around 7,000 yen compared with the peak in mid September.

The electric furnace steels’ purchase price was almost flat from Monday until Wednesday. One dealer source said the market price is reaching the bottom while scrap export price is higher than the purchase price by local electric furnace steels. The market price would be wait-and-see mood.