Japan: Tokyo Steel cuts H2 scrap purchase prices by JPY 1,000/t ($6/t)

• Export weakness, weaker yen pressure domestic scrap prices
• Prices unchanged at Tahara yard amid stronger procurement needs

Tokyo Steel, Japan’s largest electric arc furnace (EAF) steelmaker, reduced its H2 scrap purchase prices by JPY 1,000/t ($6/t) at all plants except Tahara, effective 10 July. Following the revision, H2 buying prices now stand at JPY 52,000-53,000/t ($320-326/t). Prices at the Tahara plant remained unchanged at JPY 54,000/t ($332/t), while scrap price announcements for the Takamatsu plant remain suspended.

The price cut reflects softer market fundamentals, as weaker export demand and competitive overseas offers continued to pressure Japanese scrap values. Although the weaker yen improved exporters’ competitiveness, sluggish finished steel demand across key export markets, including Vietnam, Taiwan, South Korea, Bangladesh, and Thailand, limited buying interest. At the same time, overseas buyers maintained cautious procurement, resulting in a persistent bid-offer gap and prompting Tokyo Steel to align its purchase prices with prevailing market conditions while keeping Tahara unchanged due to relatively stronger local procurement requirements.