Japan Ferrous Scrap Price Drops by 1,000-2,000 Yen/t

Japanese ferrous scrap market price decreased by 1,000-2,000 yen per tonne at the end of last week. The market price became below 25,000 yen per tonne for H2 grade around Tokyo. The price also largely dropped around Osaka though which maintained highest level. The supply and demand balance isn’t loose. A dealer source said the market price can rebound only when ferrous scrap export contracts and export price increase.

Export backlogs are decreasing while new export negotiations are inactive with East Asian customers. Many large dealers turned down export tender held by Osaka based ferrous scrap dealers’ group, Kansai Tetsugen on Friday due to higher yen exchange rate and Chinese Nation day.

Ferrous scrap purchase price by electric furnaces steel makers around Tokyo decreased by 1,000 yen to 24,000-25,000 yen per tonne at the end of last week. Tokyo Steel Manufacturing reduced the purchase price by 1,000 yen on Saturday. Other makers lowered the price, too. Scrap dealers decreased their export price from Tokyo Bay and then the export price is lower than local electric furnaces’ purchase price.

Around Osaka, the market price decreased by 1,000-2,000 yen from the end of last week to the beginning of this week. The export grows stagnant to East Asia. The purchase price of local electric furnaces is 25,500-27,000 yen per tonne for H2.

Demand for ferrous scrap demand is increasing from integrated steel makers while keeps low from electric furnace steel makers and export.