Tokyo Steel continues to cut local scrap purchase prices

Thursday, 28 July 2022 15:20:27 (GMT+3)   |   Istanbul
       

The major EAF-based steel producer in Japan, Tokyo Steel, has continued to cut its local scrap purchase prices, with the latest decrease of JPY 2,000/mt effective as of July 29. This is the seventh price cut announced by the producer in the month of July. Japanese sources expect this declining trend to continue in the coming days as there is little support for prices in Southeast Asia. In particular, the support which traditionally comes from China in September when demand usually recovers is expected to be insufficient this year.

After the reduction announced by Tokyo Steel today, July 28, prices for H2 scrap have dropped to JPY 39,000-42,000/mt ($288-310/mt) depending on the mill, down by JPY 2,000/mt or $12/mt from July 26.

Tokyo Steel’s shindachi scrap prices have decreased to the range of JPY 41,000-44,000/mt ($303-325/mt), again down by JPY 2,000/mt or $12/mt. All prices in question are delivered.

On July 28, Bank of Japan deputy governor Amamiya Masayoshi spoke at a meeting with local officials in Iwate about Japan's economic and monetary policy, stating, “With the impact of Covid-19 easing, Japan's economy has finally started to show positive signs, especially in the services sector. However, due to supply-side constraints… production activity in the manufacturing industry has been pushed down. These developments were reflected in the June 2022 Tankan (short-term economic survey three of enterprises in Japan), which shows that business sentiment for the non-manufacturing industry has improved, whereas that for the manufacturing industry has deteriorated.”

Plant

H2

Shindachi

Price (JPY/mt)

Price change (JPY /mt)

Price (JPY/mt)

Price change (JPY/mt)

Tahara

42,000

-2,000

44,000

-2,000

*Nagoya

41,000

-2,000

-

-

Okayama

42,000

-2,000

44,000

-2,000

Kyushu

41,500

-2,000

43,500

-2,000

Utsunomiya

41,000

-2,000

42,500

-2,000

Takamatsu

39,000

-2,000

41,000

-2,000

$1 = JPY 135.5


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