The leading Japanese EAF-based steel producer Tokyo Steel has announced upward adjustments for its domestic scrap prices in three regions, up by JPY 500/mt. Since April 9, this is the second upward price revision made by the Japanese steelmaker. After the rises done for the Kyushu and Okayama regions on September 13, Kansai is also on the list this time. The total price increase in Kyushu and Okayama has now reached JPY 1,000/mt. As mentioned in SteelOrbis’ previous reports, the total decrease in Tokyo Steel’s domestic scrap purchase prices had reached $24-30/mt since the downtrend started on April 9, while the bottom was reached on August 27.
Despite the price increase, the general range for H2 grade scrap purchase prices has remained stable in the range of JPY 37,000-40,500/mt ($249-274/mt) depending on the mill. The scrap purchase prices for the Tokyo Bay, Tahara and Kyushu yards represent the upper end of the price range, while Takamatsu still represents the bottom level. Taking into account the changes in the exchange rate, the dollar-based prices have moved up by $1/mt as compared to the levels announced on September 13.
Meanwhile, shindachi scrap prices of Tokyo Steel have moved sideways at JPY 38,000-42,500/mt ($257-287/mt) delivered, up by $1/mt on the lower end and unchanged on the upper end in US dollars. The prices shared in the table below are effective as of September 20.
| Plant | H2 scrap | Shindachi | ||
| Price (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | |
| Tahara | 40,500 | 0 | 42,500 | 0 |
| Nagoya | 40,000 | 0 | - | - |
| Okayama | 40,000 | +500 | 41,000 | +500 |
| Kansai | 39,500 | +500 | - | - |
| Takamatsu | 37,000 | 38,000 | ||
| Kyushu | 40,500 | +500 | 41,500 | +500 |
| Utsunomiya | 39,500 | 0 | 41,000 | 0 |
| Tokyo Bay | 40,500 | 0 | - | - |
$1 = JPY 148.07
