The situation in H2 grade scrap segment in Japan has continued to deteriorate, with the suppliers having no other choice than to accept lower bids. Accordingly, the main Japanese EAF-based producer Tokyo Steel has cut its scrap purchase prices by JPY 500-1,000/mt ($5-9/mt) for all its plants, with the exception for one.
Specifically, the biggest decline by JPY 1,000/mt has been seen for the Tahara plant, where the price level for H2 has decreased to JPY 50,000/mt ($454/mt). While prices for Kyushu and Takamatsu have dropped by JPY 500/mt to JPY 49,000/mt ($445/mt), the price for Okayama Works has decreased similarly, to JPY 50,500 ($459/mt). The price for Utsunomiya Works has remained unchanged, at JPY 49,000/mt ($445/mt). All prices are delivered and effective from July 20.
Taking into account that in export destinations the customers have been also aiming to purchase at lower prices, the reference price for ex-Japan H2 scrap is now at JPY 48,000-48,500/mt ($436-441/mt) FOB.