Amid sharp fall in global scrap prices and recent fall in bids placed by South Korean steel mills for Japanese scrap, Tokyo steel has cut scrap purchase prices by JPY 1000/MT at all its different works with effect from tomorrow (i.e. 07 Feb’18).
Japan’s leading EAF steel producer – Tokyo Steel has cut its domestic scrap purchase prices the second time today after registering first price cut since last four months on 02nd Feb’18. As per latest price circular, scrap buying prices have moved down further by JPY 1000/MT (USD 9) at all five works which would be effective from tomorrow (i.e. 07th Feb’18) for all grades of scrap in Japan.
Now H2 scrap fetches JPY 37,000/MT (USD 339) at largest work in central Japan-Tahara. While the same grade fetches JPY 36,000/MT (USD 330) at Utsunomiya works in north Japan, H2 bids are placed at JPY 35,000/MT(USD 321) for Okayama and Kyushu works in west Japan while for its Takamatsu Steel Center company keeps bids at JPY 34,500/MT (USD 316).
South Korea’s leading electric arc furnace steelmaker – Hyundai Steel has reduced its import prices for Japanese H2 ferrous scrap by JPY 1000/MT (USD 9) today. Its latest bid put for H2 grade scrap fetches at JPY 34,500/MT (USD 316), FoB Japan against its last bid reported on 30th Jan’18 which was at JPY 35,500/MT (USD 325) FoB Japan.Following which Tokyo steel would have witnessed this price cut today.
Japanese scrap sellers from Kanto region recently reduced scrap export prices further and market participants are expecting Japanese scrap prices are likely to come down further in Monthly export tender Kanto Tetsugen scheduled on 9th Feb’18. Yesterday the scrap export prices for H2 scrap were assessed at around JPY 36000-36,500/MT, FoB Japan.
Tokyo Steel’s scrap purchase prices with effective from 07 Feb’18 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 37,000 | 35,000 | 35,000 | 36,000 | 34,500 |
| First Grade | 36,500 | 34,500 | 34,500 | 36,000 | 34,000 |
| Second Grade | 35,000 | 33,000 | 33,000 | 34,500 | 32,500 |
| New Cutting Press A | 40,500 | 37,000 | 37,000 | 37,500 | 36,500 |
| Shredder A | 37,500 | 35,500 | 35,500 | 36,500 | 35,000 |
| Shredder C | 37,000 | 35,000 | 35,000 | 36,000 | 34,500 |
Prices in Japanese Yen/MT for transport on land (Exchange Rate USD 1 = JPY 109.1)
Source: Tokyo Steel Reports
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