Major Japanese EAF-based steel producer Tokyo Steel has announced local scrap purchase price increases after almost a month of stability following the previous long-lasting downtrend.
The producer increased scrap purchase prices for all of its five plants by JPY 500/mt ($4.6/mt) on November 13. As a result, prices for Takamatsu have reached to JPY 20,000/mt ($184/mt) delivered and prices for Okayama have risen to JPY 21,000/mt ($193/mt) delivered. Prices for the other three assets have been set at JPY 22,500-23,500/mt ($207-216/mt) delivered. The new prices will be effective from November 14.
Local prices increase in Japan have been expected by market sources following the higher-priced Kanto Tetsugen tender signed this week and overall better sentiments in the market.
Ex-Japan export offers are at JPY 24,000-24,500/mt ($221-226/mt) FOB, the same as SteelOrbis reported earlier this week. “We are seeing the offer price increase by $5-10/mt as compared to early November, but buyers are not in a rush to purchase,” a trader said. Current offers for Japanese H2 to Vietnam are at $265-270/mt CFR.
$1 = JPY 108.6
