Japan: Tokyo Steel cuts H2 scrap purchase prices by JPY 500/t ($3/t) for fourth time at two Kanto plants

• • Several EAF mills undertaking summer maintenance

• • Lower H2 export offers weigh on domestic prices

Tokyo Steel, Japan’s largest electric arc furnace (EAF) steelmaker, reduced its H2 scrap purchase prices for the fourth consecutive time by JPY 500/t ($3/t) at its Utsunomiya Plant and Tokyo Bay Satellite yard in the Kanto region, effective 23 July. Following the revision, H2 buying prices fell to JPY 51,500/t ($315/t) at Utsunomiya and JPY 51,000/t ($312/t) at the Tokyo Bay Satellite yard.

The latest price reduction reflects persistent weakness in both Japan’s domestic and export scrap markets. Domestic demand remained under pressure as several EAF mills entered scheduled summer maintenance, reducing scrap consumption, while extreme summer temperatures continued to dampen construction activity and finished steel demand.

Export sentiment also stayed weak, with Vietnamese mills having already secured sufficient inventories and limiting purchases amid sluggish downstream steel demand. Falling H2 export prices, softer domestic collection prices, and cautious buying in the deep-sea bulk market further weighed on sentiment. Although the weaker yen improved export competitiveness, it failed to offset subdued regional demand, prompting Tokyo Steel to further adjust its procurement prices in line with prevailing market conditions.