- Steelmaker reduces total prices in the range $16-32/t since May
- Stronger currency may erode competitiveness of Japanese exports
Tokyo Steel, Japan’s largest electric arc furnace (EAF) steelmaker, announced its second H2 scrap price cut in August, reducing purchase prices by JPY 500/t ($3/t) across all plants, effective 5 August.
The latest reduction reflects continued weakness in domestic scrap demand and Tokyo Steel’s efforts to align procurement costs with softer market fundamentals. Although purchase prices were cut by JPY 500/t ($3/t), a nearly 4% appreciation of the JPY since the previous revision partly offset the impact of the reduction in dollar terms. This marks the 12th price reduction since Tokyo Steel began its downward pricing cycle on 22 May, with cumulative cuts reaching JPY 2,500-5,000/t ($16-32/t), depending on the plant.
A stronger JPY may reduce the competitiveness of Japanese scrap exports despite lower domestic buying prices, while weak overseas demand, particularly from Vietnam, continues to weigh on market sentiment.
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