Tokyo Steel Manufacturing plans to start operating a new steel scrap collection point called the Tokyo Bay Satellite Yard, on June 13, the Japanese electric arc furnace operator said June 5, and “will start collecting scrap iron.”

The new yard is expected to buy heavy scrap iron items of up to 2,000 mm in length and shredded items, in line with specifications for Tokyo Steel’s Tahara plant.

“At the start, there would likely be no impact on FAS prices, but sooner or later, FAS prices would follow Tokyo Steel’s prices. Tokyo Steel can decide the price based on their own intentions (to prevent exports), but FAS prices shall be affected by export prices in the Far East. Hence, gradually but steadily, Tokyo Steel’s price would be a price setter at Tokyo Bay,” the trader said.

FAS collection prices were heard remaining largely rangebound day over day June 6, with HS prices heard at Yen 44,000-44,500/mt, H2 prices at Yen 40,500-41,000/mt ($306- $309/mt), and Shindachi prices at Yen 43,500-44,500/mt.

Tokyo Steel also operates satellite yards at Kansai and Nagoya. The Funabashi yards are located on premises owned by NEWSCON Corp., a subsidiary of Envipro Holdings Inc., a circular economy company.

Consolidated data from Envipro showed that for the nine months ended March 31, 2025, it shipped 364,000 mt of ferrous scrap, down 4.6% year over year.

The opening of Tokyo Bay yard comes as Tokyo Steel plans to add 250,000 mt/year of cold-rolled-coil production capacity at its Okayama plant as early as 2026.