Prices for ex-Japan scrap in both local and export markets have continued their downtrend. The main EAF-based steel producer in Japan, Tokyo Steel, has announced another drop in its local procurement scrap prices today, May 25, the seventh correction the company has made in May.
Scrap purchase prices of Tokyo Steel have been cut by JPY 1,000/mt ($8/mt) today for all five assets. Prices for H2 scrap have come to JPY 57,000-58,500/mt ($441-453/mt) depending on the mill. The higher end of the range still corresponds to Utsunomiya Works in the Kanto area. The Shindachi scrap price range of Tokyo Steel has been settled at JPY 59,500-63,000/mt ($460-488/mt). All prices are delivered and effective from May 26.
The local scrap price correction in Japan has been quite expected, taking into account that supply has been exceeding demand for the past month and international buyers have still been cautious in purchases, from Japan in particular. South Korean mills have continued to focus on local scrap purchases and the major producers Hyundai Steel and Dongkuk Steel have cut their purchase prices by KRW 10,000/mt ($8/mt) just today, signalling good scrap flow. “Hyundai has a tender [for ex-Japan scrap] today,” a market source said with the results of the tender expecting to be released tomorrow.
Offers for H2 scrap from Japan to Vietnam have dropped to $480-500/mt CFR this week, down by $15-30/mt over the past week. This price corresponds to about JPY 56,500-57,000/mt ($437-441/mt) FOB, but no deals have been reported so far.
The SteelOrbis reference price for ex-Japan H2 scrap has declined further to JPY 56,500-58,000/mt ($437-449/mt) FOB, down by JPY 1,500-2,500/mt ($12-19/mt) from last week.
|
Plant |
H2 |
Shindachi |
||
|
Price (JPY/mt) |
Price change (JPY /mt) |
Price (JPY/mt) |
Price change (JPY/mt) |
|
|
Tahara |
58,000 |
-1,000 |
63,000 |
-1,000 |
|
Okayama |
58,000 |
-1,000 |
61,500 |
-1,000 |
|
Kyushu |
58,000 |
-1,000 |
60,000 |
-1,000 |
|
Utsunomiya |
58,500 |
-1,000 |
60,500 |
-1,000 |
|
Takamatsu |
57,000 |
-1,000 |
59,500 |
-1,000 |
$1 = JPY 129.14