The main Japanese EAF-based steel producer, Tokyo Steel, has continued to decrease its scrap purchase prices. The producer has announced another sharp drop in scrap purchase prices at its Utsunomiya plant today, January 28, with a cut of JPY 3,000/mt or $29/mt compared to the previous day. As a result, prices at Utsunomiya have lost JPY 9,000/mt ($86/mt) this week. This creates a more bearish mood in Japan’s scrap export market.
Tokyo Steel has cut the H2 price at its Utsunomiya asset to JPY 29,000/mt ($278/mt), while it was at JPY 38,000/mt early this week.
Prices for the other four assets have remained stable today. The highest level for H2 is for the Tahara Works and Okayama Works at JPY 39,500/mt ($379/mt). At Kyushu, the price for H2 is at JPY 39,000/mt ($374/mt), while the price at Takamatsu stands at JPY 38,500/mt ($369/mt). All prices are delivered and effective from January 28.
Scrap prices in the export market have also shown further weakness just after the decline reported a day ago. The SteelOrbis reference price for ex-Japan H2 scrap has come to JPY JPY 35,000-38,000/mt ($335-364/mt) FOB, down by JPY 1,000/mt ($10/mt) in a single day and down by JPY 3,750/mt ($36) since last week.