The major EAF-based steel producer in Japan, Tokyo Steel, has continued to increase its local scrap procurement prices, this time by JPY 500-3,000/mt. However, it is observed that this time the increase on Japanese yen basis was not enough to offset the depreciation of the currency against the US dollar. This is the second price rise announced by Tokyo Steel this week, with the first announced on Monday and the total of the upward revision has amounted to JPY 1,500-3,000/mt.
Tokyo Steel’s general range for H2 grade scrap is now at JPY 48,000-51,000/mt ($334-355 337-363 /mt) depending on the mill. However, the depreciation of the Japanese yen against the US dollar has meant that prices have decreased by $3-8/mt in US dollars as compared to the dollar-based price levels announced on September 5. The Tahara, Kyushu and Utsunomiya plants are now procuring scrap at the same price, which represents the higher end of prices, while the lower end of the price range is for the Takamatsu plant.
Tokyo Steel’s general range for shindachi scrap is currently at JPY 50,000-53,000/mt ($348-369/mt). Dollar-based prices have decreased by $4-8/mt. All prices in question are delivered and effective as of September 10. Exchange rate fluctuations are taken into consideration when calculating the dollar-based price changes.
Plant |
H2 |
Shindachi |
||
Price (JPY/mt) |
Price change (JPY /mt) |
Price (JPY/mt) |
Price change (JPY/mt) |
|
Tahara |
51,000 |
+2,500 |
53,000 |
+2,500 |
Nagoya |
50,500 |
+3,000 |
- |
0 |
Okayama |
51,000 |
+500 |
53,000 |
+500 |
Kyushu |
51,000 |
0 |
53,000 |
0 |
Utsunomiya |
51,000 |
+3,000 |
52,500 |
+3,000 |
Takamatsu |
48,000 |
+500 |
50,000 |
+500 |
$1 = JPY 143.66