The main EAF-based steel producer in Japan, Tokyo Steel, has announced a further price reduction, by JPY 1,500/mt or $11.5/mt, which is sharper than the previous decline of JPY 1,000/mt made last week on May 6. Since the exchange rate fluctuations have slowed down somewhat, scrap prices in Japan have been pushed down mainly by weaker demand and the pressure on finished steel quotations in the region.
Tokyo Steel’s new price levels for H2 scrap are now in the range of JPY 62,000-64,000/mt depending on the mill, with the highest level being for Utsunomiya Works. On dollar basis, the prices in question have declined to $476-491/mt. Meanwhile, the shindachi scrap quotation range has also declined, to JPY 64,500-68,000/mt ($495-522/mt). All prices are delivered and effective from May 7.
Though local scrap prices in Japan have declined, they are still much higher than that in the overseas markets, and so market participants have been waiting for further drops locally. “In my opinion, prices will go down probably in the near future, once the list prices of finished products are out next week from Tokyo steel,” a source from Japan stated, sharing his opinion.
Plant |
H2 |
Shindachi |
||
Price (JPY/mt) |
Price change (JPY /mt) |
Price (JPY/mt) |
Price change (JPY/mt) |
|
Tahara |
63,000 |
-1,500 |
68,000 |
-1,500 |
Okayama |
63,000 |
-1,500 |
66,500 |
-1,500 |
Kyushu |
63,000 |
-1,500 |
65,000 |
-1,500 |
Utsunomiya |
64,000 |
-1,500 |
66,000 |
-1,500 |
Takamatsu |
62,000 |
-1,500 |
64,500 |
-1,500 |
$1 = JPY 130.25