The leading Japanese EAF-based steel producer Tokyo Steel has cut its domestic scrap purchase prices by JPY 500/mt in several regions. This is the fourth consecutive drop in Tokyo Steel’s scrap prices since June 2. Market sources report that demand in the local Japanese scrap market is expected remain slower than usual as the summer lull has started.
The general range for H2 grade scrap price has moved down by JPY 500/mt on the lower end to the range of JPY 38,000-41,000/mt ($264-284 267-284/mt) depending on the mill. The scrap purchase price for Tokyo Bay now represents the upper end of the price range. Given the changes in the exchange rate, the dollar-based quotations have declined by $3/mt on the lower end and remained stable on the upper end as compared to the levels mentioned on June 28.
Meanwhile, shindachi scrap prices of Tokyo Steel have remained stable at JPY 39,500-43,000/mt ($274-298/mt) delivered, moving sideways in terms of US dollars. The prices shared in the table below are effective as of July 3.
| Plant | H2 scrap | Shindachi | ||
| Price (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | |
| Tahara | 40,500 | -500 | 43,000 | 0 |
| Nagoya | 40,000 | -500 | - | |
| Okayama | 40,000 | -500 | 41,500 | 0 |
| Kansai | 40,000 | -500 | - | |
| Takamatsu | 38,000 | -500 | 39,500 | 0 |
| Kyushu | 39,500 | 0 | 40,500 | |
| Utsunomiya | 40,500 | 0 | 42,000 | 0 |
| Tokyo Bay | 41,000 | - | - | |
$1 = JPY 143.93