After raising scrap purchase price on 12th Dec (yesterday) by JPY 500/MT only at Tahara work in Japan, Tokyo Steel has raised scrap purchase prices further by USD 4.4/MT (JPY 500) at all its works with effect from today (13th Dec).
Japan’s leading EAF steel producer – Tokyo Steel has raised scrap purchase prices consecutively for the third time in Dec’17. The company has also increased its scrap buying prices consecutively in last two days. As per latest price circular, prices have raised further by JPY 500/MT (USD 4.4) at all its works which would be effective from today (i.e. 13th Dec’17) for all grades of scrap at all five works in Japan.
Now H2 scrap fetches JPY 37,000/MT (USD 327) at largest work in central Japan-Tahara. While the same grade fetches JPY 36,000/MT (USD 318) at Utsunomiya works in north Japan, H2 bids are placed at JPY 35,500/MT(USD 313) for Okayama and Kyushu works in west Japan while for its Takamatsu Steel Center company keeps bids at JPY 35,000/MT (USD 309).
Japanese H2 scrap reference prices now hiked to JPY 35,000/MT (USD 309), Fob Japan while for New Cutting (Press) scrap to JPY 37,500-37,700/MT (USD 330-333), FoB Japan.
Japan’s monthly ferrous scrap export tender – Kanto Tetsugen has recorded highest bids in last four years for Dec’17 since Dec’13. Bids placed for H2 scrap through this tender have increased by USD 37/MT M-o-M to JPY 36,126/MT FAS (USD 318) in Dec’17 against JPY 31,890/MT FAS (USD 281) awarded in Nov’17. Recently many of the South Korean steel mills have raised Japanese scrap purchase prices in order to fetch higher volumes. Following which Tokyo steel could have raised its domestic scrap purchase bids.
Market participants are expecting Japanese scrap prices to move up further till the end of Jan’18 amid winters.
Tokyo Steel’s scrap purchase prices with effective from 13 Dec’17 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 37,000 | 35,500 | 35,500 | 36,000 | 35,000 |
| First Grade | 36,500 | 35,000 | 35,000 | 36,000 | 34,500 |
| Second Grade | 35,000 | 33,500 | 33,500 | 34,500 | 33,000 |
| New Cutting Press A | 40,500 | 37,500 | 37,500 | 37,500 | 37,000 |
| Shredder A | 37,500 | 36,000 | 36,000 | 36,500 | 35,500 |
| Shredder C | 37,000 | 35,500 | 35,500 | 36,000 | 35,000 |
Prices in Japanese Yen/MT for transport on land (Exchange Rate USD 1 = JPY 113.34)
Source: Tokyo Steel Reports
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