- Tokyo Steel raise prices by JPY 1,000/t at Utsunomiya plant
- Low scrap generation in Northern Kanto tightens supply
Japan Metal Daily: Ferrous scrap purchase prices by electric furnace-based steel manufacturers in Japan’s Kanto region witnessed selective increases, driven mainly by tight availability in certain areas. Tokyo Steel raised its purchase prices of specific scrap grades by JPY 1,000/tonne (t) ($6/t) at the Utsunomiya plant, effective from 10 January, while prices at other plants saw a more modest JPY 500/t ($3/t) increase. Some mills followed with limited adjustments, though several grades remained unchanged.
Tight supply in northern Kanto
Market participants stated that low scrap generation in northern Kanto resulted in a persistent sense of shortage. Slower scrap arrivals at certain plants prompted mills to raise prices to attract material. According to industry sources, the latest hike at Utsunomiya was aimed at improving arrival volumes, rather than reacting to export prices.
Export tender impact limited
The recent Kanto Tetsugen Cooperative tender, which cleared 20,000 t of H2 scrap at JPY 46,771/t ($295/t) FAS, was widely viewed as irrelevant to domestic price revisions. Mills emphasised that procurement decisions were based on individual plant arrival conditions. For example, Tokyo Steel’s Kyushu plant, where arrivals remain smooth, cut scrap prices by JPY 500/t ($3/t).
Balanced yet weak demand
Despite localised shortages, overall supply-demand conditions remain balanced at low levels due to sluggish steel demand and reduced mill operating rates. Bay-area prices for H2 scrap were assessed at JPY 43,000-44,000/t ($274-280/t), with most sellers adopting a cautious approach.
Note: This article has been written in accordance with a content exchange agreement between Japan Metal Daily and BigMint.
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