- Tokyo Steel raises prices at two sites
- Kanto tender may influence export prices
Electric furnace steelmakers in Japan’s Kanto region continued to raise scrap purchase prices, with buying levels increasing by around JPY 500/t ($3/t). Tokyo Steel lifted H2 purchase prices by JPY 500/t ($3/t) at its Utsunomiya plant and Tokyo Bay satellite yard from 3 October, prompting several other mills to follow with similar increases.
By 5 October, H2 scrap purchase prices in the region were around JPY 47,000-48,500/t ($297-307/t). The latest increase came roughly two weeks after the previous revision and reflected expectations of further gains in export prices.
According to Tokyo Steel’s purchasing department, limited export availability following the previous round of buying was one factor behind the increase. Rising dollar-denominated export prices also encouraged mills to take a precautionary approach and secure sufficient scrap ahead of potential further price gains.
Japanese scrap export activity to Vietnam, however, has remained slower than expected. Vietnam’s bids for Japanese scrap have risen moderately to around $375/t CFR, while exchange-rate movements remain volatile. The upcoming Kanto Tetsugen tender on 9 October is also being closely watched as a potential indicator for export price direction.
As of 5 October, H2 scrap prices in the Gulf Coast region were also reported at around JPY 47,000-48,000/t ($297-303/t), adding to expectations of continued firmness in Japan’s domestic scrap market.
Note: This article has been published in accordance with a content exchange agreement between Japan Metal Daily and BigMint.
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