The main Japanese EAF-based steel producer, Tokyo Steel, has finally announced an increase of its local price for the Utsunomiya plant on February 12. The surge by JPY 6,000/mt ($57/mt) in one round signals that the company is trying to restart raw material supply after maintenance work. The positive expectations for the Japanese scrap market with higher export prices have added to the situation.
Prices for H2 scrap for the Utsunomiya asset have increased by JPY 6,000/mt ($57/mt) to JPY 35,000/mt ($333/mt), while the price had been at JPY 29,000/mt ($276/mt) since January 29 as the company wanted to stop scrap flow due to two weeks of maintenance, according to sources.
The producer has rolled over prices for scrap at four of its other plants. The H2 price level at the Tahara Works has remained at JPY 38,000/mt ($362/mt), while the Okayama, Kyushu and Takamatsu prices stand at JPY 37,500/mt ($357/mt), JPY 37,000/mt ($352/mt) and JPY 36,500/mt ($348/mt), respectively. All prices are delivered and effective from February 13.
As it was reported earlier this week, the SteelOrbis reference price for ex-Japan H2 scrap went up by JPY 3,000/mt ($29/mt) over the week to JPY 39,500-40,500/mt ($376-386/mt) FOB.