The leading Japanese EAF-based steel producer Tokyo Steel has continued to increase its local scrap purchase prices, with its latest hike coming after the slight increase observed in the Kanto scrap export tender on November 11. In the tender, the export price moved up by JPY 644/mt or $4/mt month on month. Sources report that scrap demand received from the export markets is on the low side due to difficulties in the steel segment. On the other hand, the generation of scrap has been disrupted by slower industrial production, leading Tokyo Steel to increase its prices to secure scrap tonnages.
The general price range for H2 grade scrap has increased by JPY 500/mt to JPY 39,000-44,000/mt ($253-285/mt) depending on the mill. The Takamatsu region still represents the lower end of the general range. The Tahara, Okayama, Kyushu and Tokyo Bay plants still represent the upper end of the general price range. Including the changes in the exchange rates, the dollar-based prices have moved up by $6/mt on the lower end and by $3/mt on the upper end as compared to the levels announced on November 1.
Tokyo Steel’s shindachi scrap prices have also increased, by JPY 500/mt to JPY 40,000-48,000/mt ($259-311/mt) delivered. On dollar basis, the lower end of the prices increased by $4/mt and the upper end by $3/mt. The prices shared in the table below are effective as of November 12.
| Plant | H2 scrap | Shindachi | ||
| Price (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | |
| Tahara | 44,000 | +500 | 46,000 | +500 |
| Nagoya | 43,500 | +500 | - | |
| Okayama | 44,000 | +500 | 45,000 | +500 |
| Kansai | 43,500 | +500 | - | |
| Takamatsu | 39,000 | +500 | 40,000 | +500 |
| Kyushu | 44,000 | +500 | 45,000 | +500 |
| Utsunomiya | 43,000 | +500 | 44,500 | +500 |
| Tokyo Bay | 44,000 | +500 | 48,000 | +500 |
$1 = JPY 154.25