The leading Japanese EAF-based steel producer Tokyo Steel has cut its domestic scrap prices by JPY 500/mt in some regions. This is the fifth consecutive drop in Tokyo Steel’s scrap prices since June 2. The move has followed the drop observed in the latest Kanto export scrap tender. The announcement is expected to have a negative impact on the local Japanese scrap market where market sources report that demand is on the slow side.
The general range for H2 grade scrap prices has moved down by JPY 500/mt on the upper end to JPY 38,000-40,500/mt ($259-276/mt) depending on the mill. The scrap purchase prices for the Tokyo Bay and Tahara yards represent the upper end of the price range. Given the changes in the exchange rate, the dollar-based prices have declined by $5/mt on the lower end and by $8/mt on the upper end as compared to the levels on July 3.
Meanwhile, shindachi scrap prices of Tokyo Steel are now at JPY 39,000-42,500/mt ($266-290/mt) delivered, also moving down by JPY 500/mt or $8/mt in US dollars. The prices shared in the table below are effective as of July 10.
| Plant | H2 scrap | Shindachi | ||
| Price (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | |
| Tahara | 40,500 | 0 | 42,500 | -500 |
| Nagoya | 40,000 | 0 | - | - |
| Okayama | 40,000 | 0 | 41,000 | -500 |
| Kansai | 40,000 | 0 | - | - |
| Takamatsu | 38,000 | 0 | 39,000 | -500 |
| Kyushu | 39,500 | 0 | 40,500 | 0 |
| Utsunomiya | 40,000 | -500 | 41,500 | -500 |
| Tokyo Bay | 40,500 | -500 | - | - |
$1 = JPY 143.93
