Tokyo Steel, the main EAF-based producer in Japan, has announced a further local scrap purchase price increase, the second this week and the fifth this month. Accordingly, the prices for all five of the company’s assets have been increased by JPY 1,000-1,500/mt ($9.6-14.4/mt).
On Thursday, December 10, Tokyo Steel settled prices for H2 scrap at Tahara Works at JPY 37,500/mt ($359/mt), up by JPY 1,500/mt from the level announced on Tuesday. For the Utsunomiya plant, prices have also added JPY 1,500/mt, coming to JPY 33,000/mt ($316/mt). The price levels for the other three assets have risen by JPY 1,000/mt. At Okayama Works, the new price for H2 will be JPY 35,500/mt ($340/mt), while for Kyushu and Takamatsu it will be JPY 33,000/mt ($316/mt) and JPY 32,000/mt ($306/mt), respectively. All prices are delivered and effective from December 11.
Market participants are sure that the demand for scrap in the Japanese domestic market will keep going up in the coming one to two months as major producers like JFE Steel are restarting their earlier idled units. This will keep supporting export scrap prices from Japan.