On June 23, Tokyo Steel, the main EAF-based steel producer in Japan, has announced a scrap purchase price increase for its three out of five assets, which has been the first change since May 18. Overall, firm demand in the local market remains the main driver for the ongoing price adjustments.
Specifically, the prices for H2 scrap at the Okayama, Utsunomiya and Takamatsu plants have added JPY 1,000/mt ($9/mt), reaching JPY 51,000/mt ($461/mt), JPY 49,000/mt ($443/mt) and JPY 49,500/mt ($448/mt), respectively. Prices have remained stable at Tahara and Kyushu Works at JPY 51,500/mt ($466/mt) and JPY 50,000/mt ($452/mt), respectively. All prices are delivered and effective from June 24.
Strong local scrap demand in Japan is supporting the position of suppliers in the export market, even though demand remains limited, especially for H2 grade. Hyundai Steel has issued its new bid for ex-Japan H2 at JPY 48,000/mt ($434/mt) FOB today, so only small volume could be found at such a low level, sources believe, as most exporters are asking for JPY 51,000/mt ($461/mt) FOB. Hyundai’s bid for H1/2 50:50 is JPY 48,500/mt ($439/mt) FOB at the moment. Nevertheless, stronger demand is seen for Japanese higher grade scrap with Hyundai Steel announcing bids for HS and shindachi as the same price as last week.
The SteelOrbis reference price for ex-Japan H2 scrap has remained at JPY 49,000-51,000/mt ($443-461/mt) FOB so far after and increase by JPY 1,000-2,000/mt ($5-13/mt) over the past week.