Bloomberg reported that Japan's weekly scrap iron and steel prices fell by 3.4% for a second week as JFE Holdings Inc, Nippon Steel Corporation and rivals deepen output cuts in response to weakening demand.

Japan Ferrous Raw Materials Association said in a statement that the average so called H2 grade ferrous scrap price fell to JPY 14,977 a tonne in the week ended December 14th 2008 from JPY 15,499 a week earlier.

It may be noted that the global economic slowdown has prompted steelmakers in Asia to trim output, driving down scrap prices by 78% from a record in July 2008. Tokyo Steel Manufacturing Co cut its offer price for steel scrap by JPY 500 to JPY 1,000 a tonne on December 18th 2008.

The Japan Ferrous Raw Materials Association calculates the average scrap iron and steel prices using figures from Tokyo, Nagoya and Osaka, the nation’s main cities, for export and domestic customers.

(Sourced from Bloomberg.com)