Leading Japanese EAF-based steel producer Tokyo Steel has announced today, May 21, its first local scrap price increase this calendar year. Export prices for Japanese scrap have been supported by demand from Vietnam this week.
On Thursday, May 21, Tokyo Steel announced a JPY 1,000/mt ($9.2/mt) local scrap purchase price increase for all its plants. The prices for H2 scrap at the Tahara and Utsunomiya factories have reached JPY 19,500/mt ($181/mt). Prices for Okayama and Kyushu have increased to JPY 18,500/mt ($172/mt). The price level at Takamatsu has remained the lowest, at JPY 17,500/mt ($162/mt), delivered. The new prices will be effective from May 22.
Market sources have said that this price increase is a very positive sign in general for the Japanese scrap market as exporters will be able to increase supplies to the domestic market after months of recession. Also, the offer volumes for higher grade scrap in Japan have started to revive gradually.
The export price for ex-Japan H2 scrap has been at JPY 23,000-23,500/mt ($214-218/mt) FOB recently, almost in line with JPY 23,000/mt FOB last week. While South Korean suppliers have been inactive this week, suppliers have managed to sell to Vietnam with the highest deal prices at $255/mt CFR for H2, sources have said. This price is equivalent to JPY 23,500/mt FOB. But the tradable value for other sales destinations is still at JPY 23,000/mt FOB maximum.