Tokyo Steel, the main EAF-based steel producer in Japan, has increased its local scrap purchase prices for three out or five of its assets by JPY 500-1,000/mt ($5-9/mt). Firm demand for scrap in the local market in Japan will prevent export prices from recording sharp declines even though lower bids have started to emerge from Asian customers.
The prices for H2 scrap at the Okayama Works have increased by the highest margin, JPY 1,000/mt, to JPY 44,000/mt ($406/mt). The price increase for Kyushu and Takamatsu has been JPY 500/mt to JPY 43,500/mt ($401/mt) and JPY 42,500/mt ($392/mt) respectively.
Tokyo Steel’s prices for H2 at the Tahara Works and Utsunomiya have remained stable at JPY 44,000/mt ($406/mt) and JPY 42,000/mt ($387/mt), respectively. All prices are delivered and effective from April 21.
The export scrap prices from Japan have been under pressure since late last week. Following the latest deals to Vietnam at $450-452/mt CFR for H2 and still high freight rates, the SteelOrbis reference price has been adjusted to JPY 43,000/mt ($396/mt) FOB. The prices had reached JPY 43,000-44,500/mt ($396-410/mt) FOB a week before.