- Tokyo Steel reduces scrap buying after weaker Kanto tender.
- Soft Vietnam demand weighs on Japan’s scrap sentiment.
Japan Metal Daily : In the Kanto region, the purchase price of scrap iron by electric furnace manufacturers fell by about JPY 1,000/t ($6/t). Based on the results of the Kanto Railway Gen Cooperative Association’s bidding on the 9th, Tokyo Steel implemented a JPY 1,000/t ($6/t) purchase price reduction at Utsunomiya Works and other locations starting from the 10th. Other manufacturers also moved to lower prices by JPY 500-1,500/t ($3-9/t), including individual support. As of the 10th, the manufacturer’s actual purchase price H2 is around JPY 52,500/t ($324/t). This is the first price drop in about 11 months since August last year. The district market, which had been largely watching since May this year, has now become clear signs of decline.
From the 10th, Tohtetsu cut the purchase price of scrap iron at the Utsunomiya Plant by JPY 500/t ($3/t) for the new cut, and JPY 1,000/t for other items. Additionally, the purchase price for the Tokyo Bay Satellite Yard was reduced by JPY 2,000/t for Shindan, and by JPY 1,000/t ($6/t) for others. From the 10th, the purchase prices for special grade H2 were JPY 53,000/t ($327/t) at the Utsunomiya Plant and JPY 52,500/t ($324/t) at the Tokyo Bayshore SY price.
Regarding this price reduction, Tohtetsu explained the reason: “Until now, export prices had become nominalized and there were no benchmarks. However, the actual export situation became clear after the bidding results at Kanto Railway Gen on the 9th,” said Hiroshi Katayama, head of the purchasing department.
Regarding iron scrap exports, while buying in countries like Vietnam was sluggish, the high prices of Japanese products were also frustrating, causing a sense of stagnation in new export contracts.
Initially, the export bid by the Kanto Railway Source Cooperative Association on the 9th was expected to be in the JPY 53,000/t range, but it won 15,000 tons for Vietnam at JPY 52,508/t ($322/t) H2, FAS. The price fell below prior expectations, which served as a factor for Tohtetsu to assess the extent of the price reduction.
The Gulf Price H2, which had fallen ahead of manufacturers’ buying prices, also continued to fall by about JPY 1,000/t ($6/t) as of the 10th, hovering around JPY 51,000-52,500/t ($315-324/t).
Note: This article has been published in accordance with a content exchange agreement between Japan Metal Daily and BigMint.
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