- Tokyo Steel raises scrap purchase prices by JPY 500/t ($3/t)
- Hike comes amid stronger export realisations due to weaker JPY
Steel scrap purchase prices in Japan’s Kanto region rebounded after about four months, supported by higher buying prices from electric-furnace mills. Tokyo Steel raised purchase prices for all grades by JPY 500/t ($3/t) at its Utsunomiya plant and Tokyo Bay satellite yard from 19 September, prompting several other mills to follow.
As of 24 September, H2 scrap purchase prices at Kanto mills were around JPY 47,000-48,000/t ($297-304/t), with Tokyo Steel setting H2 at JPY 47,500/t ($300/t) at its two Kanto locations. The increase was the first since mid-May.
Tokyo Steel said the hike was aimed at preventing domestic scrap from shifting toward exports amid higher dollar-denominated export prices and a weaker JPY, which traded around JPY 157/USD. The company indicated that the latest increase was an initial step and did not rule out further hikes.
Kanto scrap prices had been declining since July but began stabilising in September. Bay-area H2 prices were mainly around JPY 46,000-46,500/t ($291-294/t), with some deals reaching JPY 47,000/t ($297/t). However, supplier response remained limited amid relatively balanced regional supply and demand.
The start of a 5,000-t shipment by the Kanto Railway Source Cooperative Association on 24 September provided some support to market sentiment.
This article has been published in accordance with a content exchange agreement between Japan Metal Daily and BigMint.
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