Japan-based scrap suppliers have continued to benefit from the firm demand seen since recently in their local market as well as from customers abroad. In particular, after a long pause, the Japan-based Kansai export tender for H2 scrap held on October 19 was closed at JPY 55,150/mt FAS or JPY 56,150/mt ($491/mt) FOB, which is almost JPY 2,000/mt (around $17/mt) higher than the average price fixed in the Kanto Tetsugen export tender held last week. Although the final destination is not clear yet, the price reflects the strong position of exporters, coupled with the general bearish sentiments as regards the future price trend in the segment.
Subsequently, on October 20 the main EAF-based steel producer in Japan, Tokyo Steel, decided to revise its scrap purchase prices again to secure feedstock. Specifically, the company has raised its bids for H2 and shredded scrap for its Tahara plant by JPY1,000/mt ($9/mt) and by JPY500/mt ($4.5/mt) for its Utsunomiya plant. As a result of the adjustments, the company’s purchase prices for H2 scrap have reached JPY 52,000-57,000/mt ($454-498/mt), with the high end of the range having increased by JPY1,000/mt ($9/mt) compared to the the levels settled previously. Meanwhile, the new levels for shindachi scrap stand at JPY 54,500-63,000/mt ($476-550/mt), up JPY1,000/mt ($9/mt) compared to the high end of the range voiced two days previously. All prices are delivered and effective from October 19.
|
Plant |
H2 |
Shindachi |
||
|
Price (JPY/mt) |
Price change (JPY /mt) |
Price (JPY/mt) |
Price change (JPY/mt) |
|
|
Tahara |
57,000 |
1,000 |
63,000 |
1,000 |
|
Okayama |
55,000 |
0 |
58,500 |
0 |
|
Kyushu |
56,000 |
0 |
58,000 |
0 |
|
Utsunomiya |
54,500 |
500 |
56,500 |
500 |
|
Takamatsu |
52,000 |
0 |
54,500 |
0 |