The main Japanese EAF-based steel producer Tokyo Steel has cut its scrap purchase prices at its Utsunomiya plant again today, January 26, with a drop of JPY 3,000/mt or $29/mt compared to the previous day. In total, scrap purchase prices have declined by JPY 7,000/mt ($67.5/mt) at Utsunomiya located in the Kanto area. Weaker local prices in Japan have pushed down export prices.
Tokyo Steel has announced its new price for H2 at the Utsunomiya asset at JPY 33,000/mt ($318/mt), while it was at JPY 36,000/mt just a day earlier and at JPY 40,000/mt last Friday.
Prices for the other four assets have been left unchanged this time. The highest price level for H2 is still for the Tahara Works at JPY 41,000/mt ($395/mt), while for other three plants the price range is JPY 40,000-40,500/mt ($385-390/mt). All prices are delivered and effective from January 27.
Some lower offers have started to emerge in the scrap export market in Japan this week. For instance, the negotiations with Vietnamese customers for H2 scrap have been held at $420-425/mt CFR, down by $5-10/mt from last week.
The SteelOrbis reference price for ex-Japan H2 scrap has declined slightly to JPY 39,500-41,000/mt ($381-395/mt) FOB, with the higher end of the range down by JPY 500/mt ($4.8/mt) since late last week.