The leading Japanese EAF-based steel producer Tokyo Steel has cut its scrap procurement prices for its Tahara and Nagoya plants by JPY 2,000/mt as compared to the levels shared on May 9. The fluctuation of the Japanese yen is still impacting ex-Japan scrap offers and most of the usual buyers in the spot market believe that the current offer levels are on the high side. The fire at the Tahara plant is believed to be the reason Tokyo Steel lowered its prices at the two locations in question. According to local news agencies, a fire started at the Tahara plant on Saturday, May 25. The company said they are planning to suspend production until the end of June due to the damage caused by the fire.
After the announcement, Tokyo Steel’s general range for H2 grade scrap has declined by JPY 2,000/mt on the lower end to JPY 48,500-51,500/mt ($315-328/mt) depending on the mill. Meanwhile, the dollar equivalents have moved down by $9/mt and by $2/mt as compared to the previous levels announced on May 9. The lower end of Tokyo Steel’s prices is now represented by the Nagoya plant.
The shindachi scrap prices of Tokyo Steel have moved down by JPY 1,000/mt on the lower end to JPY 50,500-53,000/mt ($322-338 330-339/mt), down by $8/mt on the lower end and by $1/mt on the upper end on US dollar basis. All the prices in question are delivered and effective as of May 28.
Plant |
H2 scrap |
Shindachi |
||
Price (JPY/mt) |
Price change (JPY/mt) |
Price change (JPY/mt) |
Price change (JPY/mt) |
|
Tahara |
49,500 |
-2,000 |
50,500 |
-2,000 |
Nagoya |
48,500 |
-2,000 |
- |
- |
Okayama |
51,500 |
0 |
52,500 |
0 |
Kyushu |
51,500 |
0 |
52,500 |
0 |
Utsunomiya |
51,500 |
0 |
53,000 |
0 |
Takamatsu |
50,500 |
0 |
51,500 |
0 |
$1 = JPY 156.78