Tokyo Steel has raised scrap purchase prices consecutively third time in last 7 days. Prices hiked further by USD 9/MT (JPY 1000) at all its works today amid bullish steel demand in Tokyo ahead of 2020 Olympics.
Japan’s leading EAF steel producer – Tokyo Steel has raised scrap purchase price for the fourth time in a row in Nov’17. After three consecutive price hikes on 2nd, 8th and 10th Nov’17, the steel maker has again raised scrap purchase prices with effect from today (14th Nov).Company has increased its scrap buying prices further by JPY 1000/MT (USD 9) at all five works of the company.
As per latest price circular, new prices would be effective from today (i.e. 14th Nov’17) for all grades of scrap at all its works of the company in Japan.
Now H2 scrap fetches JPY 35,000/MT (USD 308) at largest work in central Japan-Tahara. While the same grade fetches JPY 34,000/MT (USD 299) at Utsunomiya works in north Japan, and JPY 33,500/MT (USD 295) at Okayama and Kyushu works in west Japan respectively. For its Takamatsu Steel Center company keeps bids at JPY 33,000/MT (USD 290).
Earlier to this, the steel maker had raised scrap purchase prices on 10 Nov’17 by USD 4/MT (JPY 500) at its three works Okayama, Kyushu and Takamatsu Steel Centre in Western Japan. However, prices at its Tahara and Utsunomiya works remained unchanged.
The average bid price in Japan’s monthly scrap export tender ‘Kanto Tetsugen’ for Nov’17 conducted on 9th Nov17 have gone higher by JPY 1,338/MT (USD 12/MT) M-o-M to JPY 31,890/MT FAS (USD 280/MT) for H2 grade scrap.
Japanese H2 scrap reference prices now hiked to JPY 32,300/MT (USD 284), FoB Japan while for New Cutting (Press) scrap to JPY 34,800/MT (USD 306), FoB Japan. These prices have increased by USD 8-10/MT on W-o-W basis.
Steel demand in Japan continues to remain strong amid bullish construction activities taking place for 2020 Olympics in Tokyo and rising production from auto makers.
Tokyo Steel’s scrap purchase prices with effective from 14 Nov’17 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 35,000 | 33,500 | 33,500 | 34,000 | 33,000 |
| First Grade | 34,500 | 33,000 | 33,000 | 34,000 | 32,500 |
| Second Grade | 33,000 | 31,500 | 31,500 | 32,500 | 31,000 |
| New Cutting Press A | 38,500 | 35,500 | 35,500 | 35,500 | 35,000 |
| Shredder A | 35,500 | 34,000 | 34,000 | 34,500 | 33,500 |
| Shredder C | 35,000 | 33,500 | 33,500 | 34,000 | 33,000 |
Prices in Japanese Yen/MT for transport on land (Exchange Rate USD 1 = JPY 113.67)
Source: Tokyo Steel Reports
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