Strong demand for scrap has persisted in the Japanese market, resulting in another increase of purchase prices by Tokyo Steel. The company has increased the price only for Utsunomiya, its major facility in the Kanto region, this time. In such conditions, offers for ferrous scrap for foreign customers from Japan have kept moving up.
On December 23, Tokyo Steel announced that it will increase the price for H2 scrap at Utsunomiya by JPY 2,000/mt ($19/mt) to JPY 41,000/mt ($396/mt). Prices for other assets have remained stable after the previous revision made on December 21. The H2 price level for Tahara Works and Okayama Works are at JPY 42,000/mt ($406/mt) and JPY 41,500/mt ($401/mt). Prices for Kyushu and Takamatsu are both at JPY 39,000/mt ($377/mt). All prices are delivered.
Japanese traders have reported that the recent visible increase in local demand in Japan and rapidly rising prices have given great support to scrap sellers, even though demand from abroad has not been strong. Offers for H2 scrap from Japan in the export market have gone up to JPY 45,000/mt ($435/mt) FOB and, though there have been no deals reported at this level, sellers are trying to hold volumes for the local customers, rather to give large discounts to foreign buyers.
The SteelOrbis reference price for ex-Japan H2 scrap has been increased by JPY 700-1,000/mt ($6.8-9.7/mt) from last week to JPY 43,000-44,000/mt ($415.6-425/mt) FOB.