Japan: Electric furnace mills lift scrap purchase prices across Kanto

• Kanto H2 scrap rises to 18-month high
  
  
• Export strength and US rally support prices
  
  

Japan Metal Daily: Electric furnace mills in Japan's Kanto region continued to raise scrap purchase prices, with H2 grade increasing by JPY 1,000/t ($6/t) to around JPY 44,500-45,500/t ($286-292/t) as of 24 February. Tokyo Steel lifted buying prices by JPY 1,000/t ($6/t) across all bases to JPY 45,000/t ($289/t) from 21 February, prompting other regional mills to follow with hikes of JPY 500-1,000/t ($3-6/t). The latest increase pushed prices to their highest level in nearly 18 months.

The upward movement was largely supported by firmer US scrap markets amid cold weather-related supply disruptions and stronger dollar-denominated export offers to Asia ahead of the Lunar New Year holidays. Market participants noted that, "improving export realizations, particularly to Vietnam, encouraged mills to adjust domestic procurement prices."

Despite the rally, mills remain cautious about sustainability. Some participants indicated that while the market has recovered nearly half of the sharp decline seen during July-September 2024, further upside will depend on export negotiations, currency trends, and stability in overseas demand.

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