- Benchmark H2 prices return to JPY 50,000/t level for 1st time in 2.5 months
- Improving Vietnamese demand for Japanese scrap supports domestic prices
Ferrous scrap purchase prices in Japan’s Kanto region rose by JPY 1,000/t ($6/t), bringing the H2 benchmark back to JPY 50,000/t ($316/t) for the first time in around two and a half months. Tokyo Steel implemented the increase across all grades at its Utsunomiya Plant and Tokyo Bay Satellite Yard from 14 October, prompting other electric arc furnace (EAF) steelmakers to follow suit. Actual H2 purchase prices in the region were assessed at JPY 49,500-50,500/t ($313-320/t).
Tokyo Steel said the latest increase was aimed at keeping domestic purchase prices competitive with export prices to Vietnam, a major destination for Japanese scrap. According to Hirotsugu Katayama, the company’s purchasing department head, the previous price revision had failed to match export levels, prompting another increase. The company raised prices by JPY 1,000/t ($6/t) across all grades and locations, following its previous hike on 8 October.
Export competition intensified after the Kanto Tetsugen cooperative’s export tender on 9 October secured a winning bid of JPY 52,077/t ($330/t) for H2 scrap on a free-alongside-ship (FAS) basis. A total of 20,000 t was awarded for shipment to Bangladesh. Meanwhile, export prices to Vietnam were estimated at around JPY 51,500/t ($326/t) on an H2 basis, providing a benchmark for domestic buyers.
Tokyo Steel indicated that further price increases remain possible at its two Kanto facilities, where H2 purchase prices still vary by location. The company said it would consider additional adjustments depending on market conditions.
Elsewhere, Tokyo Steel raised its premium-grade scrap purchase price at the Tahara Plant by JPY 1,000/t ($6/t) to JPY 52,500/t ($332/t) from 14 October. The company attributed the higher level to supply-demand conditions in central Japan. Overall, the latest increases reflect steelmakers’ efforts to secure scrap amid firm export competition, with further domestic price adjustments possible if export values remain elevated.
Note: This article has been published in accordance with a content exchange agreement between Japan Metal Daily and BigMint.
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