Tokyo Steel, the leading EAF-based steel producer in Japan, has announced a cut in its local scrap purchase prices by JPY 500-1,000/mt. Despite the cut, Tokyo Steel’s dollar-based prices have increased as compared to the levels recorded on March 9 when the Japanese yen was at 136.44 to the dollar. The Asian scrap market is characterized by a cautious mood this week due to the banking crisis in the US, while most players state that a downward movement in the scrap and steel markets should be expected.
Tokyo Steel’s general range for H2 grade scrap has moved down to JPY 53,500-55,000/mt ($403-414/mt), depending on the mill. The dollar-based prices have increased by $3-7/mt compared to the previous levels seen on March 9 due to the appreciation of the Japanese yen.
Shindachi scrap prices of Tokyo Steel have moved to the new range of JPY 55,500-57,000/mt ($418-429/mt), also up $4-7/mt from the previous levels. All the prices in question are delivered and effective as of March 17.
As of today, March 17, Tokyo Bay FAS-based prices for H2 grade scrap are JPY 53,000-54,000/mt ($399-407/mt). This new level signals JPY 54,000-55,000/mt ($399-414/mt) FOB for this grade. While Tokyo Steel reduced its prices by JPY 500-1,000/mt, the Tokyo Bay prices have decreased by JYP 500-1,500/mt, depending on the grade.
Tokyo Bay FAS prices for HS grade scrap are now in the range of JPY 56,000-57,500/mt ($422-434/mt). Meanwhile, for shindachi scrap the price stands at JPY 56,000-57,500/mt ($422-434/mt).
Exchange rate fluctuations are taken into consideration when calculating the dollar-based price changes.
|
Plant |
H2 |
Shindachi |
||
|
Price (JPY/mt) |
Price change (JPY /mt) |
Price (JPY/mt) |
Price change (JPY/mt) |
|
|
Tahara |
55,000 |
-500 |
56,000 |
-500 |
|
Nagoya |
54,500 |
-500 |
- |
-500 |
|
Okayama |
55,000 |
-500 |
57,000 |
-500 |
|
Kyushu |
55,000 |
-500 |
57,000 |
-500 |
|
Utsunomiya |
55,000 |
-500 |
56,500 |
-500 |
|
Takamatsu |
53,500 |
-1,000 |
55,500 |
-1,000 |
$1 = JPY 132.90