Following the depreciation of the Japanese yen, the leading Japanese EAF-based steel producer Tokyo Steel has announced upward adjustments of its domestic scrap prices, with an increase of JPY 500/mt for all plants except Takamatsu. Since September 12, Tokyo Steel has been raising its local scrap prices gradually and slowly, though this is the first increase to include most of Tokyo Steel’s scrap yards. While local scrap demand in Japan is relatively stable, there is pressure coming from the export segment. Despite the increase in domestic prices on Japanese yen basis, dollar-based prices have changed just slightly.
The general range of H2 grade scrap prices has moved up on the upper end by JPY 500/mt to JPY 37,000-41,000/mt ($246-273/mt) depending on the mill. The Takamatsu region now represents the lower end of the general range, while the prices in the other regions are very similar to each other. Taking into account the changes in the exchange rate, the dollar-based prices have moved down by $1/mt on the lower end and up by $2/mt on the upper end, as compared to the levels announced on September 27.
Meanwhile, shindachi scrap prices of Tokyo Steel have also increased, by JPY 500/mt on the upper end to JPY 38,000-43,000/mt ($253-286/mt) delivered, while down by $1/mt on the lower end and up by $2/mt on the upper end in US dollars. The prices shared in the table below are effective as of October 7.
| Plant | H2 scrap | Shindachi | ||
| Price (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | |
| Tahara | 41,000 | +500 | 43,000 | +500 |
| Nagoya | 40,500 | +500 | - | - |
| Okayama | 41,000 | +500 | 42,000 | +500 |
| Kansai | 40,000 | +500 | - | - |
| Takamatsu | 37,000 | 38,000 | ||
| Kyushu | 41,000 | +500 | 42,000 | +500 |
| Utsunomiya | 40,000 | +500 | 41,500 | +500 |
| Tokyo Bay | 41,000 | +500 | - | - |
$1 = JPY 150.13