Japan: EAF mills extend scrap price cuts amid ample inventories, weak demand

• • Tokyo Steel cuts H2 scrap prices for fourth time this month

• • Weak Vietnam demand limits export market support

Japan’s electric arc furnace (EAF) mills continued to lower domestic ferrous scrap purchase prices in the Kanto region, with prices falling by around JPY 500/t ($3/t) as comfortable inventories and subdued domestic demand weighed on procurement.

Tokyo Steel, Japan’s largest EAF steelmaker, reduced H2 scrap purchase prices by JPY 500/t ($3/t) at its Utsunomiya Plant and Tokyo Bay Satellite Yard, effective 25 July. Following the revision, H2 buying prices stood at JPY 51,500/t ($314/t) at Utsunomiya and JPY 51,000/t ($311/t) at the Tokyo Bay yard. This marks the fourth price cut at these locations in July.

According to Tokyo Steel, the latest reduction was driven by sufficient inventory levels at both plants, requiring further stock adjustments. The company noted that scrap arrivals increased after the previous price cuts, prompting another downward revision.

Other EAF mills in the Kanto region followed Tokyo Steel’s move, with prevailing H2 purchase prices now heard at JPY 51,000-52,000/t ($311-317/t). Meanwhile, H2 collection prices in the Tokyo Bay area declined further to JPY 49,500-50,500/t ($302-308/t).

Export conditions remained mixed. Although the weaker yen improved exporters’ competitiveness, lower export negotiations with Vietnamese buyers and continued soft demand limited support for domestic scrap prices. Tokyo Steel said it will continue to monitor export contract trends while cautiously adjusting procurement prices.

Note: This article has been published in accordance with a content exchange agreement between Japan Metal Daily and BigMint.