The leading Japanese EAF-based steel producer Tokyo Steel has reduced its local scrap procurement prices by a further JPY 500-1,000/mt at all its yards, pushing the general purchase price range down by JPY 1,000/mt. Weaker export prices and the lower production capacity utilization rates of Japan-based EAF producers are the main factors exerting pressure on local scrap prices in Japan. On July 29, the general price range for H2 grade scrap announced by Tokyo Steel stands at JPY 50,500-53,000/mt ($309-324/mt, depending on the mill, with exchange rate at $1 = JPY 163.93.
Tokyo Steel's general price range for H2 grade scrap has moved down by JPY 1,000/mt as compared to the levels recorded on August 8 to JPY 47,000-50,000/mt ($296-315/mt) depending on the mill. Including the changes in the exchange rates, the dollar-based quotations have decreased by $9/mt.
Also, Tokyo Steel's shindachi scrap prices have declined by JPY 1,000/mt to JPY 48,500-52,000/mt ($305-328/mt), down by $10/mt on the lower end and by $9/mt on the upper end on US dollar basis. The prices shared in the table below are effective as of August 22.
The Tokyo Bay FAS-based price for H2 grade scrap is currently at JPY 46,500/mt ($293/mt). The FOB-based export price is at JPY 47,500/mt ($299/mt) for the grade in question. The Tokyo Bay HS grade scrap price is at JPY 52,000/mt ($328/mt) FAS, while shindachi grade scrap prices are at JPY 51,000/mt ($321/mt) FAS.
| Plant | H2 scrap | Shindachi | ||
| Price (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | |
| Tahara | 50,000 | -1,000 | 52,000 | -1,000 |
| Nagoya | 48,500 | -1,500 | - | 0 |
| Okayama | 49,000 | -500 | 50,000 | -500 |
| Kansai | 48,500 | -500 | - | - |
| Takamatsu | 49,000 | -500 | 50,000 | -500 |
| Kyushu | 49,000 | -500 | 50,000 | -500 |
| Utsunomiya | 47,000 | -1,000 | 49,000 | -1,000 |
| Tokyo Bay | 47,000 | -1,000 | 48,500 | -1,000 |
$1 = JPY 158.72
