Tokyo Steel, the main EAF-based steel producer in Japan, has announced a local scrap purchase price increase for the first time since March 4. Stronger demand in the domestic market and higher export prices from Japan together with the positive outlook for April in general have all contributed to the rise.
The producer has increased the H2 price at the Tahara Works by the highest margin, by JPY 1,500/mt ($14/mt) to JPY 42,500/mt ($389/mt), while prices for the other four assets have been raised by JPY 1,000/mt ($9/mt). Tokyo Steel’s H2 prices at Okayama, Kyushu and Takamatsu have reached JPY 41,500/mt ($379/mt), JPY 42,000/mt ($384/mt) and JPY 40,500/mt ($370/mt), respectively. The price level for the major plant in the Kanto area - the Utsunomiya plant - has moved up to JPY 41,000/mt ($375/mt). All prices are delivered and effective from April 12.
Following the rises last week, the SteelOrbis reference price for Japanese H2 scrap has stabilized at JPY 43,000-44,500/mt ($393-407/mt) FOB for now, but the dollar-based equivalent has increased by around $1-2/mt amid exchange rate fluctuations.