The major EAF-based steel producer in Japan, Tokyo Steel, has finally announced an increase in its local scrap purchase prices, supporting the idea that Japanese scrap prices in the local and export markets have bottomed out. Tokyo Steel had been cutting its prices gradually since May 6, with the domestic scrap prices of the producer declining from JPY 63,500-65,500/mt to JPY 39,000-42,000/mt from then up to the present. Meanwhile, sentiment for Japanese scrap has changed. Since mills in Southeast Asia have been exerting pressure on both local and import scrap markets over past months, they now report that the scrap flow has slowed down significantly. Even Hyundai Steel has returned to Japan with some bids today, August 18, again announcing higher levels as compared to previous bids.
The rise announced by Tokyo Steel today was JPY 1,000-2,000/mt effective as of August 19, except at Tokyo Steel’s Tahara and Takamatsu plants. After the increase, prices for H2 scrap have increased by JPY 1,000/mt or $8/mt on the upper end to JPY 39,000-43,000/mt ($288-318/mt) depending on the mill.
Tokyo Steel’s shindachi scrap prices have also moved up, by JPY 1,000/mt or $8/mt on the upper end to the range of JPY 41,000-45,000/mt ($303-333/mt).
|
Plant |
H2 |
Shindachi |
||
|
Price (JPY/mt) |
Price change (JPY /mt) |
Price (JPY/mt) |
Price change (JPY/mt) |
|
|
Tahara |
42,000 |
0 |
44,000 |
0 |
|
Nagoya |
42,000 |
+1,000 |
- |
- |
|
Okayama |
43,000 |
+1,000 |
44,000 |
0 |
|
Kyushu |
43,000 |
+1,500 |
45,000 |
+1,500 |
|
Utsunomiya |
43,000 |
+2,000 |
44,500 |
+2,000 |
|
Takamatsu |
39,000 |
0 |
41,000 |
0 |
$1 = JPY 135.3