Major Japanese EAF-based producer Tokyo Steel has increased local scrap purchase prices for all five its assets by JPY 1,000/mt ($9.4/mt) on Monday, August 17, signaling improving demand in Japan and positive sentiment in the market. A previous hike for one asset was announced on August 7.
Accordingly, Tokyo Steel’s prices for H2 for Tahara and Okayama plants have reached JPY 24,000/mt, for Kyushu factory – JPY 25,000/mt and for Takamatsu price level has remained the lowest – JPY 23,000/mt, all prices delivered. The price for Utsunomiya has been settled at JPY 24,500/mt.
Export scrap prices in Japan have not posted further increase yet, but Japanese suppliers will insist on it, taking into account that suppliers from the US have already sold at above $300/mt CFR scrap to Bangladesh and are trying to reach this level in Vietnam. Last week the tradable value for Japanese H2 scrap was JPY 25,500/mt ($240/mt) FOB, while offers for H2 scrap were at JPY 26,000-26,500/mt ($245-249/mt) FOB.
