Japan Ferrous Scrap Price Keeps Down

Ferrous scrap price dropped around Osaka for 2 weeks in a row when local steel makers get more scrap arrivals. Local electric furnace steel makers reduced the purchase price by 500-1,000 yen to 71,000-72,000 yen per tonne for H2 grade last week, which was 1,250 yen or 2% lower than recent peak. Local market interests expect lower price under lower export price and market around Tokyo after scrap price around Osaka hit the first drop in 9 months in the third week in July. Scrap offer price to Osaka from Tokyo also decreases while Tokyo Steel Manufacturing reduced the purchase price by 1,000 yen to 71,000 yen per tonne at Okayama plant on Saturday. Scrap price around Tokyo also keeps decreasing. Local electric furnace steel makers reduced the purchase price by 500-1,000 yen to 68,000-71,000 yen per tonne for H2 grade. Slower export from Tokyo bay impacts on local market due to higher price around Tokyo than international level. Local steel makers get higher scrap arrivals from the market, which resulted in lower purchase price by local makers since 2 weeks ago. Tokyo Steel reduced the price by 500 yen per tonne at Utsunomiya plant. The makers could reduce the purchase price more under increasing supply for local steel makers. However, some dealers expect offshore makers could increase the purchase of Japanese scrap with lower price.