- Maintenance at Kansai mills prompts price cut
- Scrap prices at other plants remain unchanged
Tokyo Steel reduced scrap prices by JPY 500/t ($3/t) at its Kansai plant, effective 27 May, to JPY 53,000/t ($333/t), while prices at other plants remained unchanged. Price announcements for the Takamatsu plant also remained suspended.
The price cut was mainly attributed to weaker product market conditions and slowing steel production in the Kansai region, where several local steel mills are currently undergoing scheduled maintenance. In addition, export activity from the Kansai area remained limited, as Japanese H2 scrap exports were largely restricted to Vietnam due to weak buying interest from Bangladesh and India.
Market participants also noted that recycling companies in the Kansai region had limited selling options amid reduced mill demand, leading to increased scrap deliveries to Tokyo Steel’s Kansai yard and prompting the company to lower purchase prices.
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