- Move comes amid JPY 2,000/t drop in July Kanto Tetsugen tender price
- Collectors also reduce buying prices, expecting continued export weakness
Japan’s electric arc furnace (EAF) steelmakers continued to reduce domestic scrap procurement prices during the week ended 22 July 2026 as weak export demand and softer market sentiment weighed on buying activity. Purchase prices for H2 scrap in the Kanto region declined by JPY 500/t ($3/t), with most mills paying around JPY 52,000-53,000/t ($319-325/t)as of 21 July.
Tokyo Steel reduced H2 scrap purchase prices by JPY 500/t ($3/t) at its Utsunomiya Plant and Tokyo Bay Satellite Yard, effective 18 July. Other domestic mills followed with similar reductions. Tohoku Steel (Tohtetsu) also cut purchase prices by JPY 500/t ($3/t) across all facilities except the Tahara Plant and Nagoya Satellite Yard, marking its first price reduction since 10 July.
According to the company, the latest reduction was a continuation of the earlier adjustment following the weak outcome of the July Kanto Tetsugen export tender, where 15,500 t of H2 scrap was sold to Vietnam at JPY 52,508/t ($322/t) FAS, nearly JPY 2,000/t ($12/t) lower than the previous month’s tender.
With buying interest from Vietnam and other overseas markets remaining subdued and few fresh export contracts concluded, domestic mills adjusted procurement prices lower to reflect weaker export realisations. Scrap collectors also reduced buying prices in anticipation of continued export weakness, with H2 yard prices in the Kanto region heard around JPY 50,500-51,000/t ($310-313/t), remaining below mill purchase prices. Market participants expect domestic scrap prices to remain under pressure until export demand improves.
Note: This article has been published in accordance with a content exchange agreement between Japan Metal Daily and BigMint.
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