The leading Japanese EAF-based steel producer Tokyo Steel has cut its domestic scrap purchase prices by JPY 500-1,000/mt in three regions. With this latest reduction, the total decrease in Tokyo Steel’s domestic scrap purchase prices, since the downtrend started on April 9, has reached JPY 3,500/mt on the lower end and JPY 2,500/mt on the upper end, with declines on US dollar basis of $30/mt and $24/mt, respectively.
The general range for H2 grade scrap price has declined by JPY 1,000/mt on the lower end to the range of JPY 37,000-40,500/mt ($250-273/mt) depending on the mill. The scrap purchase price for the Tokyo Bay and Tahara yards represents the upper end of the price range. Including the changes in the exchange rates, the dollar-based prices have declined by $4/mt on the lower end and $1/mt on the upper end as compared to the levels mentioned on August 22.
Meanwhile, shindachi scrap prices of Tokyo Steel have also moved down by JPY 1,000/mt on the lower end to JPY 38,000-42,500/mt ($256-287/mt) delivered, down by $5/mt on the lower end and by $1/mt on the upper end in US dollars. The prices shared in the table below are effective as of August 27.
| Plant | H2 scrap | Shindachi | ||
| Price (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | |
| Tahara | 40,500 | 0 | 42,500 | 0 |
| Nagoya | 40,000 | 0 | - | - |
| Okayama | 39,000 | -1,000 | 40,000 | -1,000 |
| Kansai | 39,000 | -500 | - | - |
| Takamatsu | 37,000 | -1,000 | 38,000 | -1,000 |
| Kyushu | 39,500 | 0 | 40,500 | 0 |
| Utsunomiya | 39,500 | 0 | 41,000 | 0 |
| Tokyo Bay | 40,500 | 0 | - | - |
$1 = JPY 148.04
