Tokyo Steel has announced another local scrap purchase price increase of JPY 1,000/mt ($9.6/mt) for three out of five of its assets, in the fourth upward price revision since November 11.
On Thursday, November 19, Tokyo Steel, one of the major EAF-based producers in Japan, increased its H2 scrap price for its Tahara and Okayama Works to JPY 31,000/mt ($298/mt), while its price for Kyushu increased to JPY 30,000/mt ($288/mt). Prices at Takamatsu have remained at JPY 29,000/mt ($278.5/mt) and the level at the Utsunomiya plant is also stable at JPY 27,500/mt ($264/mt). All prices are delivered and effective from November 20.
The reference price for ex-Japan H2 has remained stable since the beginning of the week at JPY 30,500-31,500/mt ($293-302.5/mt) FOB, but is up slightly from last week. Market participants are waiting for new bookings to Vietnam, where offers have increased to $335/mt CFR, which is equivalent to JPY 31,750/mt FOB. Also, higher prices for ex-US scrap have been discussed in Bangladesh, at $340-345/mt CFR, against $335/mt CFR for HMS I/II 80:20, which may further push up ex-Japan deal prices.