en.Wedoany.com Reported - Tokyo Steel, a major electric arc furnace steelmaker in Japan, announced on May 23 that it will cut the unit purchase price of scrap at its plant in the Kansai region by 500 yen, with the latest effective price at 53,500 yen/ton. Purchase prices at other bases remain unchanged at current levels. Meanwhile, the Takamatsu plant has not yet issued a price announcement, and related adjustments are in a suspended state. Tokyo Steel is Japan's largest electric arc furnace steel manufacturer, with crude steel output of approximately 2.24 million tons in fiscal 2021, and is headquartered in Chiyoda-ku, Tokyo.

Just over ten days before this price cut, Tokyo Steel had raised scrap purchase prices at all plants by 1,000 yen/ton starting May 12, bringing the H2 scrap purchase price to about 54,000 yen/ton, reflecting the firm domestic scrap fundamentals at the time. This separate 500-yen reduction in the Kansai region indicates a divergence in supply and demand conditions across different regional markets. Scrap purchase prices for electric arc furnace steelmakers in Japan's Kanto region had previously fallen below 50,000 yen/ton for the first time in three months.

Tokyo Steel's purchase price at its Kansai plant was previously at a relatively low level among its various plants, with the H2 scrap price around 43,500 yen/ton. Data from the Japan Iron and Steel Federation shows that domestic crude steel output in May fell 1.6% month-on-month and 6.3% year-on-year to 7.168 million tons. The Japanese scrap market is showing resilience in the short term, and industry participants remain attentive to subsequent trends.

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