The leading Japanese EAF-based steel producer Tokyo Steel has cut its local scrap procurement prices today, July 3, for separate grades in two regions. The lower demand received from the traditional export markets such as Taiwan and Vietnam is exerting pressure on Japanese scrap suppliers. Japanese steel producers are taking advantage of the situation by lowering their scrap procurement prices wherever they can, SteelOrbis observes. Also, the inventory levels of Japanese buyers are currently at sufficient levels.
Despite the revisions announced today, the general price range for H2 grade scrap has moved sideways as compared to the levels recorded on June 26 to JPY 53,000-54,000/mt ($329-335/mt) depending on the mill. Taking the change in the exchange rate into account, the dollar-based quotations have increased by $1/mt.
Also, Tokyo Steel’s shindachi scrap prices have remained unchanged at JPY 54,500-59,000/mt ($337-365/mt) stable on dollar basis. The prices shared oin the table below are effective as of July 4.
| Plant | H2 scrap | Shindachi | ||
| Price (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | |
| Tahara | 54,000 | 0 | 59,000 | 0 |
| Nagoya | 53,500 | -500 | - | 0 |
| Okayama | 54,000 | 0 | 55,000 | 0 |
| Kansai | 53,000 | 0 | - | - |
| Takamatsu | 53,500 | 0 | 54,500 | 0 |
| Kyushu | 53,500 | 0 | 54,500 | 0 |
| Utsunomiya | 54,000 | 0 | 55,500 | 0 |
| Tokyo Bay | 53,500 | 0 | 57,000 | -1,000 |
$1 = JPY 161.25
