Japanese ferrous scrap market price is peaking when the export price drops for East Asian market. Some electric furnace steel makers around Tokyo already reduce the purchase price while scrap market price stopped the increase after rise for 3 weeks in a row. The price could turn into decrease depending on the supply balance.

 

The scrap supply is balanced when the supply is low level and scrap export increases while domestic consumption decreases under major production cut by steel makers. Scrap supply is still low level due to lower industrial activity. A scrap dealer around Osaka said the dealers would liquidate the inventory when steel makers' purchase volume could decrease more.

 

Some electric furnace steel makers reduced the scrap purchase price by 500 yen to 20,000-22,000 yen per tonne for H2 grade in the week. The averaged price is still keeping the level. Electric furnace steel makers around Osaka keep the purchase price at 19,500-22,000 yen for H2.

 

Domestic market indicator of export FAS price decreased by 1,000-2,000 yen per tonne in the week. With the drop, the price gap was filled with domestic makers' purchase price. The export price is same level as other countries and the export transaction is slower than before. However, a trading firm source said offshore buyers would keep purchasing Japanese scrap depending on the pricing. –Japan Metal Bulletin