Tokyo Steel has announced a cut in its local scrap purchase prices for the third time this month due to lower steel demand in Japan.
On Monday, April 27, Tokyo Steel cut local scrap purchase prices by JPY 500/mt ($4.7/mt) for three of its plants. The price for H2 scrap at the Tahara factory has decreased to JPY 18,500/mt ($173/mt), while the price for Okayama has been cut to JPY 17,500/mt ($163/mt). The price level at Takamatsu is the lowest, at JPY 16,500/mt ($154/mt), delivered. The prices are stable for the remaining two plants, Kyushu and Utsunomiya, at JPY 17,500-18,500/mt ($163-173/mt). The new prices will be effective from April 28.
It is unlikely that local scrap demand in Japan will increase in the coming weeks. For the moment, the state of emergency in Japan will last until May 6, the last day of the Golden Week holiday, but many officials believe that an extension is inevitable.
H2 scrap export prices for Southeast Asian and East Asian customers have remained stable so far - at JPY 21,000-21,500/mt ($196-201/mt) FOB.
$1= JPY 107.064
