Japan Electric Furnaces Continue to Cut Scrap Purchasing Price

Ferrous scrap price continues decreasing for 3 straight weeks in Tokyo and Osaka. Electric furnace steel makers in these regions are lowering their scrap purchase price on and after Friday, when Tokyo Steel Manufacturing announced price cut by 500-1,000 yen per tonne at its all plants. Ferrous scrap demand is weak from domestic steel makers. Meanwhile, Japanese ferrous scrap export price declined for new contracts shipped to South Asia. These factors impact domestic scrap price.

Electric furnaces’ purchasing price lowered by 1,000 yen per tonne around Tokyo and by 500-1,500 yen per tonne around Osaka.

Electric furnace steel makers around Tokyo pay 16,000-18,000 yen per tonne for H2 grade . Tokyo Steel Manufacturing announced price cut by 1,000 yen effective for arrivals on Friday and other makers followed the price down. The local purchasing price declined by about 2,000 yen from the beginning of this month.

In Tokyo, scrap generation maintains low. Scrap arrivals are few at dealers’ sites. A scrap dealer source said overseas scrap users might offer Japanese scrap if Japanese market price continues to decrease, that is, domestic scrap supply could tighten.

Electric furnace steel makers around Osaka pay 16,500-17,500 yen per tonne for H2 while some pay as high as 18,000 yen. The price is lower about 3,750 yen (18%) than the recent peak in February.

In Osaka, Kishiwada Steel and Kyoei Steel lowered purchasing price by 500 yen per tonne while Osaka Steel decreased the price by 500 yen per tonne except for L2 grade. In Himeji, Yamato Steel cut its purchasing price by 1,000 yen per tonne and Sanyo Special Steel by 1,500 yen.