As anticipated last week, the main EAF-based steel producer in Japan, Tokyo Steel, has announced another downward revision in its local procurement scrap prices today, May 16, with a cut of JPY 1,000/mt as compared to the levels recorded on Friday, May 13.
Tokyo Steel’s new price levels for H2 scrap have decreased to the range of JPY 60,000-62,000/mt ($463- 479/mt) depending on the mill, with the highest level still observed for Utsunomiya Works. Since the Japanese yen has appreciated slightly against the US dollar, the decrease in dollar-based prices was only $5/mt. The Shindachi scrap quotation range has settled at JPY 62,500-66,000/mt ($483-510/mt), also down $5/mt week on week. All prices are delivered and effective from May 17.
Amid the lower export quotations of Japanese scrap suppliers and due to the sluggish demand received from foreign buyers, Tokyo Steel was expected to lower its prices this week. Accordingly, the third decline recorded since Monday, May 9, with the decrease now totaling JPY 3,500/mt, is not a surprise for the market. Market players believe there is still some room for another decline in Tokyo Steel’s local scrap purchase quotations. The SteelOrbis reference price for ex-Japan H2 scrap has decreased on the lower end of JPY 62,000/mt FOB to JPY 61,000-62,000/mt FOB ($471-479/mt) week on week, with the upper end representing Japanese H2 offers to Vietnam and Taiwan.
|
Plant |
H2 |
Shindachi |
||
|
Price (JPY/mt) |
Price change (JPY /mt) |
Price (JPY/mt) |
Price change (JPY/mt) |
|
|
Tahara |
61,000 |
-1,000 |
66,000 |
-1,000 |
|
Okayama |
61,000 |
-1,000 |
64,500 |
-1,000 |
|
Kyushu |
61,000 |
-1,000 |
63,000 |
-1,000 |
|
Utsunomiya |
62,000 |
-1,000 |
64,000 |
-1,000 |
|
Takamatsu |
60,000 |
-1,000 |
62,500 |
-1,000 |
$1 = JPY 129.35