The leading Japanese EAF-based steel producer Tokyo Steel has cut its local scrap procurement prices twice this week so far, with the first decrease announced yesterday, August 4. This is the first time in four months that H2 grade scrap prices have move down below JPY 50,000/mt, though the appreciation of the Japanese yen has helped dollar-based quotations. Other EAF-based Japanese producers are reported to have followed suit and also cut their local scrap purchase prices this week. Meanwhile, the appreciation of the Japanese yen may have changed sentiments regarding ex-Japan scrap offers, SteelOrbis hears.
Tokyo Steel's general price range for H2 grade scrap has moved down by JPY 1,500/mt as compared to the levels recorded on July 30 to JPY 49,000-51,500/mt ($311-327/mt) depending on the mill. Including the changes in the exchange rate, the dollar-based quotations have increased by $2/mt on the lower end and by $3/mt on the upper end.
Also, Tokyo Steel's shindachi scrap prices have declined by JPY 1,500-2,000/mt to JPY 50,500-53,500/mt ($321-340/mt), up by $3/mt on the lower end and by $1/mt on the upper end. The prices shared on the table below are effective as of August 5.
| Plant | H2 scrap | Shindachi | ||
| Price (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | |
| Tahara | 51,500 | -1,500 | 53,500 | -2,000 |
| Nagoya | 50,500 | -1,500 | - | 0 |
| Okayama | 50,500 | -1,500 | 51,500 | -1,500 |
| Kansai | 49,500 | -1,500 | - | - |
| Takamatsu | 50,500 | -1,500 | 51,500 | -1,500 |
| Kyushu | 50,500 | -1,500 | 51,500 | -1,500 |
| Utsunomiya | 49,000 | -1,500 | 51,000 | -1,500 |
| Tokyo Bay | 49,000 | -1,500 | 50,500 | -1,500 |
$1 = JPY 157.51
