Tokyo Steel raises local scrap procurement prices except in Utsunomiya

The leading Japanese EAF steel producer Tokyo Steel has increased its local scrap procurement prices for all plants except for its Utsunomiya asset which had already represented the upper end of the quotation range. Domestic scrap prices in Japan have been rising despite the lack of significant demand received from abroad, particularly from South Korea or Vietnam. Today, June 16, South Korean steel producer Hyundai Steel also returned to the Japanese scrap market with higher bids as compared to May 18.

Tokyo Steel’s general range for H2 grade scrap has increased from the JPY 45,000-48,500/mt ($323-348/mt) range recorded on June 9 to JPY 46,500-48,500/mt ($330-344/mt) depending on the mill. Despite the rise observed in Japanese yen prices, the impact on dollar-based prices has been different due to the depreciation of the local currency. Dollar-based prices have increased by $7/mt on the lower end and declined by $4/mt on the upper end week on week amid the unchanged prices at the Utsunomiya plant.

Shindachi scrap prices of Tokyo Steel have also moved up by JPY 1,000-1,500/mt to JPY 47,500-50,000/mt ($337-355/mt), resulting in a $7/mt increase on the lower end and a $4/mt decline on the upper end for dollar-based prices. All the prices in question are delivered and effective as of June 17.

$1 = JPY 140.85