Japan: Tokyo Steel raises H2 scrap prices by JPY 500-1,000/t ($3-6/t) again as October demand outlook strengthens

• Kanto tender expectations boost seller sentiment
• Scrap demand expected to strengthen in October

Tokyo Steel, Japan’s largest EAF steelmaker, raised H2 scrap purchase prices by JPY 1,000/t ($6/t) at Tahara, Nagoya, Utsunomiya and the Tokyo Bay satellite yard, and by JPY 500/t ($3/t) at Okayama, Takamatsu and Kyushu, effective 9 October. This marked the company’s second price increase in October. Following the revision, H2 buying prices stood at JPY 49,000-51,500/t ($310-325/t) DAP.

The hike was supported by rising domestic scrap collection prices, stronger export values and expectations of higher scrap demand after most Japanese mills completed maintenance. Scrap demand was expected to increase in October, potentially lifting domestic prices and prompting exporters to seek higher prices, according to a trader. Limited supplier offers ahead of the 9 October Kanto tender, expectations of a firmer tender result and a more favourable exchange rate also encouraged sellers to seek higher prices.