Weak Ferrous Scrap Price in Tokyo

Ferrous scrap market price decreases at around 10,000 yen per tonne for H2 grade, around 11,800 yen for H1 and around 13,500 yen for HS at the dealers’ purchase price including freight around Tokyo. The price is likely to stay the level when the market started to be cautious for potential undervalued market.

Local electric furnace steel makers pay 16,000-18,000 yen per tonne for H2 grade scrap. The price decreased by 2,000 yen last week when they reduce the purchase volume and the export transaction is still in slump.

However, a trading firm source said if the domestic market would decrease more, offshore makers could increase purchase of cheap Japanese scrap and domestic supply could get tighter.

Ferrous scrap market price is weak at around 9,500 yen per tonne for H2 grade around Osaka.