The leading Japanese EAF-based steel producer Tokyo Steel has cut its domestic scrap purchase prices for the second time this week, by JPY 500-1,000/mt, except for the Utsunomiya region. The pessimism in the international market has reached to Japan this week, leading Tokyo Steel to cut its prices a couple of times. The stronger Japanese yen has been hard on scrap exporters and international buyers of Japanese scrap. The lack of offers and interest is causing local Japanese scrap prices to move down. Market sources believe the downtrend may continue in the coming week.
Tokyo Steel’s general range for H2 grade scrap price has declined by JPY 500-1,000/mt to the range of JPY 39,000-41,500/mt ($272-289/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 decreased by $9-11/mt as compared to April 22 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 500-1,000/mt to JPY 40,000-43,500/mt ($279-304/mt) delivered, down by $8-12/mt on US dollar basis. The prices shared in the table below are effective as of April 26.
| Plant | H2 scrap | Shindachi | ||
| Price (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | |
| Tahara | 41,500 | -1,000 | 43,500 | -1,000 |
| Nagoya | 40,500 | -1,000 | - | - |
| Okayama | 41,000 | -500 | 42,000 | -500 |
| Kansai | 41,000 | -500 | - | - |
| Takamatsu | 39,000 | -500 | 40,000 | -500 |
| Kyushu | 41,000 | -500 | 42,000 | -500 |
| Utsunomiya | 40,500 | 0 | 42,000 | 0 |
$1 = JPY 140.66