Ferrous Scrap Price Drops by 5,000 yen/t in Tokyo and Osaka

Ferrous scrap market plunged to less than 55,000 yen per tonne for H2 grade in Tokyo and Osaka when the slower demand in Asia was revealed in the result of export tender by Kanto Tetsugen on Tuesday. The price could decrease to less than 50,000 yen level compared with recent peak of more than 70,000 yen level in July.

Electric furnace steel makers around Tokyo reduced the scrap purchase price by 5,000 yen to 51,000-55,000 yen per tonne on Wednesday under easy supply balance with low level export shipping from Tokyo bay. The dealers try to liquidate the scrap inventory with expectation for lower price. The supply is expected to get easier next week when some makers plan seasonal maintenance outage.

Tokyo Steel Manufacturing and other makers reduced the scrap purchase price by 5,000 yen per tonne on Wednesday. The purchase price decreased by around 17,000 yen from recent peak in early July.

Electric furnace steel makers around Osaka also reduced the purchase price. The makers around Himeji, Hyogo followed the reduction by Tokyo Steel. Some makers around Osaka also reduced the price. The makers’ purchase price decreased by 5,000 yen to 52,000- 54,000 yen per tonne for H2 grade, which is around 17,000 yen lower than recent peak.