The main Japanese EAF-based steel producer, Tokyo Steel, has announced another round of increases in its local scrap purchase prices. Prices for all five of its assets have increased by JPY 500/mt ($5/mt).
The H2 price levels at Tahara, Okayama and Utsunomiya are at JPY 40,000/mt ($378/mt). For Kyushu and Takamatsu, prices have reached JPY 39,500/mt ($373/mt) and JPY 39,000/mt ($369/mt), respectively. The previous price change the company made was just on Monday, February 22. All prices are delivered and effective from February 25.
At the same time, Japanese scrap suppliers are still bullish in the export market. Offers to different destinations for ex-Japan H2 scrap have surged further to JPY 43,500-44,500/mt ($411-421/mt) FOB, up by about $10-15/mt compared to the levels heard late last week.
Offers to Vietnam have been reported at $450/mt CFR minimum and up to $460/mt CFR, versus offers at $435/mt CFR and deals at $425/mt CFR last week.
Also, ex-Japan H1/2 50:50 scrap has been traded at $435/mt CFR to Taiwan early this week. This level suppliers announced late last week and have managed to sign deals, as ex-US prices to Taiwan have also increased sharply. “It was good to buy from Japan with only a $15-20/mt difference [compared to ex-US HMS I/II 80:20 in containers],” a source said.
The SteelOrbis reference price for ex-Japan H2 scrap has increased to JPY 43,000/mt ($406/mt) FOB, up by JPY 1,500-2,000/mt ($14-19/mt) since early this week.