FOCUS: The link between Toyota's shutdowns and steel scrap prices

What do Toyota's automotive plant shutdowns have to do with steel scrap prices?

A lot, apparently.
Japan’s largest automaker's on-off production schedule has been a major driving force behind some of the sharp price rises for Japanese scrap in both the domestic and seaborne markets, especially for the prime-grade material.
In Japan, such scrap is referred to as Shindachi, which comprises Shindachi Bara, an unpressed new production busheling scrap that is the most commonly traded prime scrap in the Japan’s export market, and Shindachi press bundle, which is more commonly traded in the country’s domestic market and usually commands a higher price
Fastmarkets' price assessment for steel scrap Shindachi export, fob main port Japan has been on a constant upward trend in 2021, almost doubling from an intra-year trough of ¥38,000-39,000 ($333-341) per tonne on January 27 to ¥65,000-66,000 per tonne on October 13.

The lower-grade H2 scrap - which is roughly...

Published

Lee Allen

Paul Lim

October 19, 2021

10:20 GMT

Singapore, London