Sentiment in the local Japanese scrap market has worsened. The main Japanese EAF-based steel producer Tokyo Steel has announced a further cut in scrap purchase prices, with the highest drop for its Utsunomiya plant located in the Kanto area, by JPY 4,000/mt or $39/mt since January 22.
Today, January 25, Tokyo Steel cut its scrap purchase prices by JPY 1,000-2,000/mt ($10-19/mt) for two out of five of its assets.
The biggest decline by JPY 2,000/mt was for the Utsunomiya plant today after a similar drop at this plant announced just last Friday. As a result, the price level for H2 at the Utsunomiya Works, located in the Kanto area and which is the most representative for the export market, has reached JPY 36,000/mt ($347/mt). At the Tahara Works, the H2 scrap price has been lowered by JPY 1,000/mt to JPY 41,000/mt ($395/mt). At the other three plants, prices have remained unchanged at JPY 40,000-40,500/mt ($385-390/mt). All prices are delivered and effective from January 26.
The SteelOrbis reference price for ex-Japan H2 scrap has remained at JPY 39,500-41,500/mt ($381-400/mt) FOB, with a midpoint at JPY 40,500/mt ($390/mt) FOB, similar to late last week, until new deals will be disclosed.