With the recent decline in Kanto Tetsugen auction results, Japanese H2 domestic scrap prices have declined.
On April 9, SteelOrbis reported domestic Japanese H2 scrap prices for mini-mills in Tokyo, Osaka, and Nagoya regions at JPY 34,200-34,600/mt ($319-323/mt) delivered to customer while Shindachi (new cuttings) scrap was reportedly at 38,000-38,400/mt.($355-359/mt) delivered to customer.
Sources report that Japanese H2 scrap in the domestic market has declined in the same regions mentioned above are now at JPY 33,400-33,800/mt ($313-316/mt) delivered to customer. Prices declined $6/mt from the bottom of the previous range and $7/mt from the top of the same range. Tokyo Steel reportedly announced its fifth price cut on H2 scrap since late March.
Shindachi scrap is reportedly at 37,300-37,500/mt ($349-351/mt) delivered to customer. Prices declined $6/mt from the bottom of the previous range and $8/mt from the top of the same range.
A source added that the recent forecast by Japan’s Ministry of Economy, Trade and Industry that steel demand may increase 1.8 percent year-over-year in the second quarter of 2018 due to higher demand from the manufacturing and export sectors, providing the market with a positive sentiment that “this rapid correction has now probably reached equilibrium and should now trend relatively stable into May.”
USD = JPY 107.08 (Apr 9)
USD = JPY 106.86 (Apr 11)