Japan’s leading EAF mill – Tokyo Steel has significantly raised its scrap purchase today. In the price increment announced today, the company has raised price for Utsunomiya work (Kanto region) by JPY 6,000/t ($57), effective from 13th Feb’21. Hike in Japanese scrap export offers along with improved consumption have resulted in a hike in domestic offers as well.
The company would now pay a price of JPY 35,000/t ($333) for H2 scrap delivered at Utsunomiya. However, prices for the other four works remain unchanged including the Tahara plant. This is the first price hike since 26th Dec’20. Notably, Tokyo Steel’s Utsunomiya plant has increased its scrap consumption following the completion of maintenance work.
Tokyo Steel’s scrap purchase prices
Prices in JPY
Source: Tokyo Steel report
Hike in Japanese scrap export offers – Japan’s monthly Kanto Tetsugen ferrous scrap export tender for Feb’21 was concluded on 10th Feb’21. Around 15,000 t of Japanese H2 scrap was awarded at an average price of JPY 39,271/t ($375) FAS, falling by JPY 5,480/t ($52) m-o-m, SteelMint learned from its trade channels. However, bids were higher than market expectations.
Japan’s ferrous scrap export offers to Vietnam and Bangladesh have moved up by $15-20/t after the Kanto tender result, sources have shared to SteelMint. Currently, offers for bulk Japanese H2 scrap is being quoted around $418-420/t CFR to Vietnam and $425-430/t CFR to Bangladesh.
Vietnam market is quiet for Tet holidays. Whereas, Bangladesh based bulk buyers are waiting for fresh offers.
SteelMint’s price assessment for Japanese H2 scrap export stands at JPY 39,500/t FoB ($376), increasing sharply by JPY 2,000/t ($19) w-o-w.
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