The major EAF-based steel producer in Japan, Tokyo Steel, has announced a further cut in its local scrap purchasing prices, by another JPY 2,000-3,000/mt, effective as of July 23. As Japanese exporters are struggling to sell abroad amid low demand, Japanese scrap prices continue their downtrend, giving Japanese mills the opportunity to exert pressure on procurement prices. For example, just yesterday, Hyundai Steel announced bids for Japanese H2 with a reduction of more than $100/mt in prices.
After the reduction announced by Tokyo Steel today, on July 22, prices for H2 scrap have dropped to JPY 43,000-46,000/mt ($311-333/mt) depending on the mill, down by JPY 2,000/mt compared to July 15. The dollar-based prices have decreased by $13-17/mt.
Tokyo Steel’s shindachi scrap prices have decreased to the range of JPY 45,000-48,000/mt ($325-347 346- 364/mt), down by JPY 2,000-3,000/mt. Prices have indicated a $17-21/mt decrease on US dollar basis since July 15.
The SteelOrbis reference price for ex-Japan H2 scrap has declined further to JPY 40,500-44,000/mt ($293- 318/mt) FOB, down by JPY 4,500/mt ($144/mt) on the lower end due to the bids of Hyundai Steel and down JPY 2,000/mt ($131/mt) on the upper end amid the offers received by Vietnamese buyers this week.
|
Plant |
H2 |
Shindachi |
||
|
Price (JPY/mt) |
Price change (JPY /mt) |
Price (JPY/mt) |
Price change (JPY/mt) |
|
|
Tahara |
46,000 |
-2,000 |
48,000 |
-2,500 |
|
Nagoya |
45,500 |
-2,000 |
- |
- |
|
Okayama |
45,500 |
-2,000 |
47,500 |
-2,500 |
|
Kyushu |
45,000 |
-2,000 |
47,000 |
-2,000 |
|
Utsunomiya |
44,500 |
-2,000 |
46,000 |
-2,000 |
|
Takamatsu |
43,000 |
-2,500 |
45,000 |
-3,000 |
$1 = JPY 138.24