Japan: Kanto region steel market sees JPY 1,000/t drop, Utsunomiya curbs arrivals by lowering prices

In the Kanto region, the purchase price of steel scrap by electric arc furnace manufacturers dropped by JPY 1,000/t. Tokyo Steel's Utsunomiya Plant, currently suspended, implemented a JPY 1,000/t reduction in purchase price from 19 April to regulate arrivals. Following suit, other manufacturers also adjusted their prices, with decreases ranging from JPY 500 to 1,000/t.

As of 19 April, the actual purchase price (H2) for manufacturers stood between JPY 50,000 and 51,500/t. Totetsu Utsunomiya aims to resume steelmaking by month-end. However, market speculation suggested that further price reductions may occur given the price adjustments by other manufacturers (as reported by yard dealers).

Facing steelmaking challenges earlier this month, Totetsu Utsunomiya has continued to accept steel scrap, albeit restricting acceptable types to heavy, new, and shredder categories since 18 April, 2024. With ongoing steelmaking suspension, further measures were deemed necessary to manage incoming shipments. Totetsu attributed the price reduction to Utsunomiya's unique circumstances, such as the impact of steelmaking issues, according to Hirotsugu Katayama, deputy general manager of the purchasing department.

Effective from 20 April, the plant will halt cargo reception and resume accepting only heavy, new, and shredder products from 8 a.m. on the 22 April. Gulf prices (H2) are primarily between JPY 49,000 and 50,500/t as of 19 April. While some regions experienced price highs in the West, overall export momentum remained sluggish, contributing to a lower price trend.

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