On Thursday, May 28, Tokyo Steel announced a further scrap purchase price increase just two days after it raised prices for the first time in five months. This time its local purchase prices have also increased by JPY 500-1,000/mt ($4.6-9.3/mt) and it will be effective starting from May 29.
The prices for H2 scrap have increased by JPY 1,000/mt only at the Tahara plant to JPY 21,500/mt ($199.6/mt). Prices for other facilities have added JPY 500/mt. Prices at Okayama and Kyushu have reached JPY 19,500/mt ($181/mt), while those at Takamatsu have increased to JPY 18,500/mt ($172/mt), delivered. The prices for Utsunomiya, the most important for the foreign market, have been settled at INR 20,500/mt ($190/mt).
As a result, since last week, prices at Tahara have jumped by JPY 2,000/mt ($18.6/mt) and prices at Tokyo Steel’s other plants have risen by JPY 1,000/mt ($9.3/mt).
Local scrap price rises have been supporting Japanese suppliers’ positions in the export market. Offers for H2 scrap from Japan are still at INR 24,000-24,500/mt ($223-227/mt) FOB after an increase earlier this week and demand has started to revive.
