The leading Japanese EAF-based steel producer Tokyo Steel has announced a further increase in its local scrap purchase prices, effective from April 16. Although this week, the price increase is smaller than a week earlier, the producer’s latest price hike reflects persisting firm demand in Japan and a gradual reduction in scrap inventories. Some market sources believe that scrap prices may stabilize soon as they have already risen by JPY 3,000/mt ($19/mt) in April, but this will depend on the market fundamentals, and some additional rises are possible in the event of strong demand and a lack of improvement in supply.
Tokyo Steel’s price for H2 grade has added JPY 500/mt ($3/mt) this time as compared to last Friday, to JPY 53,000/mt ($333/mt). Last week, the mill had hiked its scrap prices twice, first by JPY 500/mt and then by JPY 1,500/mt, so the upward trend has definitely lost momentum.
Tokyo Steel’s shindachi scrap prices have increased by the same margin of JPY 500/mt ($3/mt) to JPY 54,000-58,000/mt ($340-365/mt) delivered. The prices shared in the table below are effective as of April 16.
| Plant | H2 scrap | Shindachi | ||
| Price (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | Price change (JPY/mt) | |
| Tahara | 53,000 | +500 | 58,000 | +500 |
| Nagoya | 53,000 | +500 | - | - |
| Okayama | 53,000 | +500 | 54,000 | +500 |
| Kansai | 53,000 | +500 | - | - |
| Takamatsu | Suspended | - | Suspended | - |
| Kyushu | 53,000 | +500 | 54,000 | +500 |
| Utsunomiya | 53,000 | +500 | 54,500 | +500 |
| Tokyo Bay | 53,000 | +500 | 58,000 | +500 |
$1 = JPY 158.94
