On December 11, major Japanese EAF-based steel producer Tokyo Steel has announced another local scrap purchase price increase, this time for all its assets. This is the third price revision this month.
Prices have increased by JPY 500-1,000/mt ($4.6-9.2/mt), faster than in the previous rounds of increase. The producer’s scrap prices have climbed by JPY 1,000/mt for Takamatsu and Okayama to JPY 22,500/mt ($207/mt) and JPY 23,500/mt ($216/mt) delivered, respectively. While at its other three assets Tahara, Utsunomiya and Kyushu, prices have added JPY 500/mt to JPY 25,000/mt ($230/mt) delivered. The prices are effective from December 12.
Even taking into account the recent increase, the local purchase prices of Tokyo Steel are far lower compared to exports quotations, and so market sources believe that the producer may keep increasing its purchase prices in the near future.
$1 = JPY 108.710
