The leading Japanese EAF-based steel producer Tokyo Steel has cut its domestic scrap purchase prices by JPY 500/mt in the Tahara region. Market sources report that international demand for Japanese scrap has been declining this week.
As a result of the reduction made in Tahara, the general range of Tokyo Steel’s H2 grade scrap purchase prices has moved down by JPY 500/mt on the upper end to the range of JPY 38,500-41,000/mt ($267-284/mt) depending on the mill. The scrap purchase price for Tahara still represents the upper end of the price range despite declining to the level paid by Tokyo Steel’s new satellite yard in Tokyo Bay. Taking into account the changes in the exchange rates, the dollar-based prices have declined by a mere $1/mt on the lower end and by $5/mt on the upper end as compared to the levels mentioned on June 13.
Meanwhile, shindachi scrap prices of Tokyo Steel have also declined by JPY 500/mt on the upper end to JPY 39,500-43,000/mt ($274-298/mt) delivered, down by $1/mt on the lower end and by $5/mt on the upper end in US dollars. The prices shared in the table below are effective as of June 28.
| Plant | H2 scrap | Shindachi | ||
| Price (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | |
| Tahara | 41,000 | -500 | 43,000 | -500 |
| Nagoya | 40,500 | 0 | - | |
| Okayama | 40,500 | 0 | 41,500 | 0 |
| Kansai | 40,500 | 0 | - | |
| Takamatsu | 38,500 | 0 | 39,500 | 0 |
| Kyushu | 39,500 | 0 | 40,500 | |
| Utsunomiya | 40,500 | 0 | 42,000 | 0 |
| Tokyo Bay | 41,000 | - | - | |
$1 = JPY 144.32
