Predictions are a matter of chance, and while it was expected that iron scrap prices wouldn’t fall below 50,000 yen, that prediction turned out to be spectacularly wrong.

→ Fe Scrap Watch 2024#7: As expected, iron scrap does not fall below 50,000 yen

The domestic purchase price of iron scrap by manufacturers continues to decline. On the 26th, Tokyo Steel lowered the H2 purchase price in some areas by 500 yen, effective from the 27th, resulting in regions where the price fell below the significant 50,000 yen mark. Contributing factors to this decline include the yen’s appreciation and the drop in export prices of scrap to Vietnam.

H2 (Tokyo Steel, Okayama Marine) and Exchange Rates

With the yen appreciating to the 154 yen per dollar range and export prices dropping by 2,000 yen, domestic purchase prices are also falling in tandem. Not only Tokyo Steel, but other manufacturers are also moving to lower prices. The export price of H2 scrap to Vietnam has fallen to FOB 330 dollars.

“Demand continues to be sluggish, and export negotiations are stalling due to the stronger yen,” according to an export trading company source.Although supply remains poor, the situation has changed due to the yen’s appreciation and the shooting incident involving former President Trump.

Other major export dealers also see the market remaining weak for the time being. An overseas scrap dealer commented, “In India, reduced iron is cheaper than iron scrap, which is likely affecting weak buying from Bangladesh.”

Although scrap prices are falling globally, overseas scrap dealers expect a rebound in September and October.

(IRUNIVERSE/MIRU)

Related articles