Tokyo Steel, the main EAF-based steel producer in Japan, has increased its local scrap purchase prices again, for the second time this week. Strong increases in the local market will provide support for export prices, sources believe.
The increase in scrap prices by Tokyo Steel has been again in the range of JPY 1,000-1,500/mt ($9-14/mt), but this time the increases at most of the producers’ plants have been at the higher end.
The prices for H2 scrap at the Tahara Works and Okayama Works have increased by JPY 1,500/mt ($14/mt) to JPY 44,000/mt ($404/mt) and JPY 43,000/mt ($395/mt), respectively. The same increase has been seen at Takamatsu, where the price has reached JPY 42,000/mt ($385/mt). Tokyo Steel has increased prices for Kyushu and Utsunomiya by JPY 1,000/mt ($9/mt) to JPY 43,000/mt and JPY 42,000/mt, respectively. All prices are delivered and effective from April 14.
The SteelOrbis reference price for ex-Japan H2 scrap is at JPY 44,000-44,500/mt ($404-408/mt) FOB. Suppliers are insisting on higher prices with official offers at JPY 45,000/mt ($413/mt) FOB, but CFR prices for the majority of buyers are on the rise also due to higher freight costs. “Now freight to Vietnam from Japan is up to $70/mt in some cases [against mainly $50-55/mt earlier],” a source said. Another trader has said that it is still very hard to find vessels for small-volume shipments of 1,000-3,000 mt.