The major EAF-based steel producer in Japan, Tokyo Steel, has announced another drop in its local scrap purchasing prices by JPY 1,500-2,500/mt effective as of July 27. This is the sixth price drop announced by the producer in the month of July, which is the continuation of the downtrend going on for months now. While low scrap demand in Japanese suppliers’ target markets continue, domestic steelmakers are successfully exerting pressure on domestic scrap quotations.
After the reduction announced by Tokyo Steel today, on July 26, prices for H2 scrap have dropped to JPY 41,000-44,000/mt ($300-322/mt) depending on the mill, down by JPY 2,000/mt from the numbers shared by SteelOrbis on July 22. Dollar-based prices have decreased by $11/mt.
The Tokyo Steel’s shindachi scrap prices have decreased to the range of JPY 43,000-46,000/mt ($316-337/mt), again down by JPY 2,000/mt. Prices have indicated a $9-10/mt decrease since July 22. All prices in question are delivered.
On July 21, Hyundai Steel had cut its bid for Japanese H2 grade to JPY 40,500/mt ($293/mt) FOB which is still significantly low as compared to the local market. SteelOrbis has learned that despite the large tonnages of scrap offered to Hyundai, the mill decided to buy only around 20,000 mt of different grades, including H2 scrap. This tonnage is considered unremarkable by market players.
|
Plant |
H2 |
Shindachi |
||
|
Price (JPY/mt) |
Price change (JPY /mt) |
Price (JPY/mt) |
Price change (JPY/mt) |
|
|
Tahara |
44,000 |
-2,000 |
46,000 |
-2,000 |
|
Nagoya |
43,000 |
-2,500 |
- |
- |
|
Okayama |
44,000 |
-2,500 |
46,000 |
-1,500 |
|
Kyushu |
43,500 |
-1,500 |
45,500 |
-1,500 |
|
Utsunomiya |
43,000 |
-1,500 |
44,500 |
-1,500 |
|
Takamatsu |
41,000 |
-2,000 |
43,000 |
-2,000 |
$1 = JPY 136.6