Japan Ferrous Scrap Market Price Drops by 1,000 Yen/t

Japanese ferrous scrap market price continues to decrease. Electric furnace steel makers lowered their scrap purchase price by 500-1,000 yen per tonne on Saturday. Japanese ferrous scrap export keeps low to East Asia. A large dealer source said the export contract price is higher than domestic market price while the export volume is low. Consequently, high export price doesn’t effect domestic market price.

Local electric furnaces such as Tokyo Steel Manufacturing lowered H2 purchase price by 500-1,000 yen to 21,500-23,000 yen per tonne on Saturday around Tokyo while some pay as high as 23,500 yen.

Japanese H2 export price is currently FOB US$ 24,000-24,500 yen per tonne. A large dealer source said the supply and demand balance is not loose but domestic market price doesn’t rebound unless the export increases.

Ferrous scrap market price decreased to 23,000-24,000 yen per tonne for H2 around Osaka and some pay as high as 25,000 yen. Several electric furnaces reduced their purchase price. A dealer source said the market price wouldn’t hit bottom until the export contracts increase.

Local electric furnace steel makers lowered the purchase price by 1,000 yen around Osaka to follow Tokyo Steel Manufacturing. The purchase price decreased by 6,000-7,000 yen from the peak level in September. A large dealer source indicated some dealers may stock ferrous scrap if the purchase price continues to drop.