Japan

The upward price trend in the domestic recycled steel market began in late February and continued into May. Although the market paused briefly after rising in late April, prices resumed their climb from mid-May as buyers implemented increases of around Yen 1000 per tonne, except in the regions of Hokkaido and Kansai. While buyers are adopting a cautious stance owing to the high price levels, the domestic market remains firm.

The Kanto Iron and Steel Cooperative Association held a joint export tender on June 10, with the winning bid amounting to Yen 54,506 per tonne for 20,000 tonnes destined for Bangladesh. This marked the first time in 11 months that the winning bid had fallen below the previous month’s level. although the decline was marginal at just Yen 96 per tonne, meaning the price remained in the Yen 54,000 range for a third consecutive month.

According to Ministry of Finance trade statistics, Japan’s exports of recycled steel totalled 595,506 tonnes in May - down 10.8% from the previous month and 8.1% from the same month last year. This marked the sixth consecutive month of year-on-year decline and the first time since the 596,604 tonnes recorded in March that volumes fell slightly below the 600,000 tonnes mark. A breakdown by destination reveals a continuing drop in shipments to South Korea, with the volume amounting to 61,158 tonnes for decreases of 0.7% month on month and 25.3% year on year.

According to preliminary data from the Japan Iron and Steel Federation, crude steel production in May totalled 6.95 million tonnes, up 5.1% from the previous month and 1.7% from the same month last year. This marked the second consecutive month of year-on-year growth. However, production levels remained relatively low, with daily output in May at around 224,000 tonnes.