The leading Japanese EAF-based steel producer Tokyo Steel has cut its domestic scrap purchase prices by JPY 500/mt, except for the Utsunomiya region. The price revision has caused a very small increase in all dollar-based quotations. The Japanese yen-US dollar exchange rate has continued to fluctuate. Since April 9, the yen has gained strength against the US dollar, moving from JPY 142.69 to today’s JPY 140.6. Market experts comment that the Japanese yen is attracting safe-haven seekers due to the softening strength of the US dollar. Meanwhile, Japanese sources report that the Asian scrap market is also moving down but the downtrend is not as fast as that in the international scrap market, led by Turkey.
Tokyo Steel’s general range for H2 grade scrap price has declined by JPY 500/mt to the range of JPY 39,500-42,500/mt ($281-302/mt) depending on the mill. The scrap purchase price for Tahara still represents the upper end of the price range. The dollar-based quotations have increased by $1/mt as compared to April 18 due to the fluctuation of the Japanese yen against the US dollar.
Meanwhile, shindachi scrap prices of Tokyo Steel have also moved down by JPY 500/mt to JPY 40,500-44,500/mt ($288-316/mt) delivered, up by $1/mt on US dollar basis. The prices shared in the table below are effective as of April 22.
As the week starts, the Tokyo Bay FAS-based price for H2 grade scrap is currently at JPY 42,000/mt ($298/mt). The FOB-based export price is now at JPY 43,000/mt ($306/mt) for the grade in question.
The Tokyo Bay HS grade scrap price now stands at JPY 47,000/mt ($334/mt) FAS, while the shindachi scrap price is at JPY 46,500/mt ($330/mt) FAS.
| Plant | H2 scrap | Shindachi | ||
| Price (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | |
| Tahara | 42,500 | -500 | 44,500 | -500 |
| Nagoya | 41,500 | -500 | - | - |
| Okayama | 41,500 | -500 | 42,500 | -500 |
| Kansai | 41,500 | -500 | - | - |
| Takamatsu | 39,500 | -500 | 40,500 | -500 |
| Kyushu | 41,500 | -500 | 42,500 | -500 |
| Utsunomiya | 41,000 | 0 | 42,500 | 0 |
$1 = JPY 140.66