- Softer export prices pressure domestic procurement
- Most plants reduce H2 buying prices further
Tokyo Steel, Japan’s largest electric arc furnace (EAF) steelmaker, reduced its H2 scrap purchase prices for the fifth consecutive time, lowering buying prices by JPY 500-1,000/t ($3-6/t) across most plants, effective 30 July.
The latest revision covers Tahara, Nagoya, Okayama, Kansai, Utsunomiya, and the Tokyo Bay Satellite yard, while prices at Kyushu remained unchanged and Takamatsu purchase price announcements remain suspended.
Following the revision, H2 buying prices declined to JPY 53,000/t ($324/t) at Tahara, JPY 52,000/t ($18/t) at Nagoya and Okayama, JPY 51,000/t ($312/t) at Kansai, and JPY 50,500/t ($309/t) at Utsunomiya and the Tokyo Bay Satellite yard. Kyushu remained at JPY 52,000/t ($318/t).
The latest price cut reflects weak domestic scrap demand as several EAF mills continue summer maintenance, reducing scrap consumption. Export sentiment also remained subdued, with Vietnamese mills limiting purchases after securing sufficient inventories, while softer H2 export prices and cautious buying across Asia continued to weigh on the market.
Although the Japanese yen weakened against the US dollar, improving exporters’ competitiveness, it was insufficient to offset sluggish regional demand, prompting Tokyo Steel to further align its procurement prices with prevailing market conditions.
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