Following the drop observed in the Kanto scrap export tender today, July 9, the leading Japanese EAF-based steel producer Tokyo Steel has cut its local scrap procurement prices for all regions and grades. Both the Kanto tender and Tokyo Steel’s purchase prices are following the downtrend in the international scrap market against a backdrop of a lack of decent steel and scrap demand in countries such as Vietnam, South Korea and Taiwan, which are the traditional importers of Japanese scrap.
Tokyo Steel’s general purchase price range for H2 grade scrap has moved down by JPY 1,000/mt on the lower end as compared to the levels recorded on July 4 to JPY 52,000-54,000/mt ($320-332/mt) depending on the mill. Including the changes in the exchange rates, the dollar-based prices have increased by $9/mt on the lower end and by $3/mt on the upper end.
Also, Tokyo Steel’s shindachi scrap prices have decreased by JPY 1,000-2,000/mt to JPY 53,500-57,000/mt ($329-351/mt), down by $8-14/mt on dollar basis. The prices shared on the table below are effective as of July 10.
| Plant | H2 scrap | Shindachi | ||
| Price (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | |
| Tahara | 54,000 | 0 | 57,000 | -2,000 |
| Nagoya | 52,500 | -1,000 | - | 0 |
| Okayama | 53,000 | -1,000 | 54,000 | -1,000 |
| Kansai | 52,000 | -1,000 | - | - |
| Takamatsu | 52,500 | -1,000 | 53,500 | -1,000 |
| Kyushu | 52,500 | -1,000 | 53,500 | -1,000 |
| Utsunomiya | 53,000 | -1,000 | 55,000 | -500 |
| Tokyo Bay | 52,500 | -1,000 | 55,000 | -2,000 |
$1 = JPY 162.44
