- Tohtetsu lowers prices amid elevated scrap inflows
- Post-Obon arrivals keep regional supply-demand loose
Japan’s Kanto ferrous scrap market continued to weaken as high incoming volumes and sluggish finished steel demand kept regional supply and demand loose. Electric-furnace mills lowered purchase prices again, while some producers introduced temporary acceptance restrictions to manage rising inventories.
Tokyo Steel cut scrap purchase prices by JPY 1,000/t ($6/t) across all grades at its Utsunomiya plant and Tokyo Bayshore Satellite Yard from 22 August. Other mills followed with similar reductions. As of 24 August, manufacturers’ H2 purchase prices were around JPY 46,500-47,500/t ($292-298/t), while Kanto market prices were mainly JPY 45,500-46,500/t ($286-292/t).
Tohtetsu reduced purchase prices by JPY 500-1,500/t ($3-9/t) across all locations from 22 August, its first reduction since 8 August. H2 prices at its two Kanto facilities were set at JPY 47,000/t ($295/t). The company attributed the cut to weaker supply-demand conditions, particularly high scrap inflows at its Kanto, Chubu and Kyushu bases.
Tohtetsu said it had initially expected the previous 8 August reduction to be its final cut, but continued heavy arrivals after the Obon holiday forced another adjustment. The move was aimed at controlling incoming stocks amid limited demand from steelmakers.
In Kanto, the Kanto Railway Source Cooperative shipped 10,000 t from 18 August-22 August, completing the programme earlier than planned. Its next shipment is scheduled from 28 August, involving 20,000 t under the August contract, raising concerns over further inventory accumulation.
Meanwhile, accidents and natural disasters in Chubu and Kyushu also contributed to elevated scrap inflows at Tohtetsu’s Tahara and Kyushu plants. Overall, weak steel demand and high scrap availability are expected to keep Kanto prices under pressure.
This article has been published in accordance with a content exchange agreement between Japan Metal Daily and BigMint.
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