Following the significant fall observed in Japan’s Kanto scrap export tender, Tokyo Steel, the leading EAF-based steel producer in Japan has also cut its domestic scrap procurement price today, May 10. Since the start of the price downtrend by Tokyo Steel on March 17, this is the eighth reduction announced by the company. No recovery in the short term is expected for Japanese scrap prices, according to market players. South Korean mill Hyundai Steel will announce its new bids for Japanese H2 scrap late today CET time and will thereby give a signal to the market.
Tokyo Steel’s general range for H2 grade scrap has moved down by JPY 2,000-2,500/mt from the levels recorded on April 215 to JPY 45,000-47,500/mt ($333-351/mt), depending on the mill. The dollar-based prices have decreased by $21-22/mt as compared to the previous levels.
Shindachi scrap prices of Tokyo Steel have moved to the new range of JPY 46,500-48,500/mt ($344-358/mt), down by JPY 2,000-2,500/mt or $21-26/mt. All the prices in question are delivered and effective as of May 11.
Exchange rate fluctuations are taken into consideration when calculating the dollar-based price changes.
Plant |
H2 |
Shindachi |
||
Price (JPY/mt) |
Price change (JPY /mt) |
Price (JPY/mt) |
Price change (JPY/mt) |
|
Tahara |
47,500 |
-2,500 |
48,500 |
-2,500 |
Nagoya |
47,000 |
-2,500 |
- |
- |
Okayama |
47,000 |
-2,500 |
48,500 |
-2,500 |
Kyushu |
47,500 |
-2,500 |
49,500 |
-2,000 |
Utsunomiya |
47,000 |
-2,000 |
48,500 |
-2,000 |
Takamatsu |
45,000 |
-2,500 |
46,500 |
-2,500 |
$1 = JPY 135.35