- Softer Japan-origin H2 export offers pressured market
- Buyers anticipated further declines in scrap prices
Tokyo Steel, Japan’s largest electric arc furnace (EAF) steelmaker, reduced its H2 scrap purchase prices by JPY 500/t ($3/t) at all plants except Tahara, effective 18 July, reflecting softer domestic and export market sentiment. The revision followed weaker demand from Vietnam, where the rainy season and sluggish steel consumption kept buyers on the sidelines amid expectations of further price declines. Japan-origin H2 export offers eased to $365-370/t CFR Vietnam, while tradable values were heard around $362/t CFR.
Lower H2 FAS collection prices in Japan, assessed at JPY 52,250/t ($322/t) FOB Tokyo Bay, alongside weaker deep-sea scrap prices due to a persistent bid-offer gap and limited buying interest, also pressured domestic procurement values. Following the revision, H2 buying prices stand at JPY 51,500-52,000/t ($317-320/t), while Tahara and Nagoya prices remained unchanged and Takamatsu continued to suspend price announcements.
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