Japan Electric Furnaces Continues Decreasing Ferrous Scrap Buy Prices

Ferrous scrap market price is decreasing around Tokyo. Electric furnace steel makers reduced the ferrous scrap purchase price to 42,500-44,500 yen per tonne for H2 grade, some pay as high as 46,000 yen per tonne, which is 26,000 yen lower than recent peak in early July. Most makers didn’t change the purchase price in this week, which restricted purchase volume. Ferrous scrap export and shipping from Tokyo bay to west Japan keeps low level. Consequently, ferrous scrap has an excess around Tokyo.Dealer source said ferrous scrap price is expected to decrease until early September when is over with output cut period. Ferrous scrap market price decreased by 2,000 yen per tonne in this week from last week around Osaka. Local electric furnace makers stopped the purchase. The supply and demand of ferrous scrap around Tokyo became loose due to slower contract of ferrous scrap export. Large dealer source said there is possible Tokyo Steel Manufacturing reduces the purchase price after reprise of the purchase. Electric furnace steel makers reduced the ferrous scrap purchase price to 46,000-47,000 yen per tonne for H2 grade, which is 26,250 yen or 36% lower than recent peak in early July. Most makers reduced the purchase price by 2,000 yen per tonne from August 27.