On Wednesday, June 3, Tokyo Steel announced a second local scrap purchase price increase this week. Prices for two plants added JPY 1,000/mt ($9.2/mt), while three plants added JPY 500/mt ($4.6/mt), all effective starting from June 4.
The prices for H2 scrap have increased by JPY 1,000/mt for Kyushu and Utsunomiya factories to JPY 21,500/mt ($197/mt) and JPY 22,000/mt ($202/mt) respectively. Prices for the other facilities have added JPY 500/mt. Tags for Tahara, Okayama and Takamatsu have been settled at JPY 23,000/mt ($211/mt), JPY 20,500/mt ($188/mt) and JPY 19,500/mt ($179/mt), delivered.
In the Japanese export market, scrap offer prices have also been moving up. Offers for H2 scrap have increased by JPY 500/mt to JPY 24,500-25,500/mt ($225-234/mt) FOB recently. There have been no offers heard below the lower end of the range, sources have said. “The suppliers are expecting further increase, so there are not many fixtures this week,” a Japanese trader said. Most market participants have been waiting for Kanto Tetsugen export tender, which will be held on June 10. For now, there have been no deals for Japanese H2 scrap above JPY 24,500/mt FOB, which corresponds to $260/mt CFR Vietnam.
