Ferrous Scrap Price Records First Drop in 9 Months in Osaka

Ferrous scrap market price decreased around Osaka for the first time since October 2007 after the price dropped around Tokyo due to slower export shipping. The dealers around Osaka try to increase the shipment for the local makers when they expect the price could decrease from more than 70,000 yen per tonne level for H2 grade. Local electric furnace steel makers around Osaka pays 71,500-72,500 yen per tonne for H2 grade, which is around 750 yen or 1% lower than previous week. Kyoei Steel reduced the purchase price by 1,000 yen at Osaka and Hirakata plants on Saturday. Nakayama Steel Products and Godo Steel’s Osaka plant also reduced the price by 1,000 yen on Saturday while Kishiwada Steel reduced the price by 1,000 yen for steel turning scrap and by 500 yen for other grades on Tuesday. Other makers followed the downward move. Local makers around Osaka could reduce the price more when they plan output reduction in July for seasonal maintenance during high electricity period and the scrap arrival is enough to the operations. Ferrous scrap price decreased around Tokyo late last week. Local electric furnaces pay 68,500-70,000 yen per tonne for H2 grade when they reduce the purchase prices with higher scrap arrivals under slower export shipping from Tokyo bay. The local dealers around Tokyo increase the shipment for steel makers with expectation for lower price. The steel makers decreased the purchase price by 500 yen per tonne on July 16 and after and they could decrease the price more when they get more scrap arrivals.