Weak Ferrous Scrap Price in Tokyo

Ferrous scrap market price is weak tone around Tokyo when the demand for ferrous scrap is reducing due to drastic output cut of steel makers. Ferrous scrap purchase price by large dealers is around 9,000 per tonne for H2 grade including freight around Tokyo. On the other hand, the purchase price by electric furnace makers is 15,000-17,000 yen per tonne for H2 around Tokyo. Japanese steel makers keep the output cut from autumn last year when the demand for steel products is decreasing. Most electric furnace makers reduced the purchase price by 5,000 yen per tonne from the last half of February when ferrous scrap export grew stagnant. Consequently, small dealers’ purchase price dropped.

Japanese ferrous scrap export price is FOB 18,000 yen per tonne for H2, which exceeded by 1,000-1,500 yen per tonne from domestic makers’ purchase price. Importers in South Korea or China is increasing the purchase of ferrous scrap form Japan by degree, but their offer price keeps low.

Japanese ferrous scrap export price from Tokyo Bay decreased by 5,179 yen to FAS 17,526 yen per tonne for H2 for April shipment compared with March shipment, according to ferrous scrap dealer association around Tokyo.

In recently, electric furnace makers stopped acceptance of ferrous scrap. However, the supply and demand for ferrous scrap isn’t expected to become loose when generation of ferrous scrap keeps low or ferrous scrap export is continuing.