Tokyo Steel, the main EAF-based steel producer in Japan, has announced another decrease in scrap purchase price for one of its plants - Utsunomiya, located in the Kanto area. However, there are expectations that the trend in the local scrap market in Japan may reverse in April amid higher demand, sources believe.
The producer has reduced the H2 price at the Utsunomiya Works by JPY 500/mt ($4.6/mt) to JPY 40,000/mt ($367/mt). Tokyo Steel has rolled over prices for its other four assets. They are in the range of JPY 41,000-39,500/mt ($376-362/mt). All prices are delivered and effective from March 26.
The SteelOrbis reference price for ex-Japan H2 scrap has been lowered by JPY 500/mt ($4.6/mt) on average from last week to JPY 40,000-41,000/mt ($367-376/mt) FOB, but most offers are not below JPY 41,000/mt FOB as exporters are hoping for a rebound in the short term.