Amid sharp strengthening in global scrap prices and the recent hike in bids placed by South Korean steel mills for Japanese scrap, Tokyo steel raised domestic scrap purchase prices by JPY 500/MT at its three major works.
Japan’s leading EAF steel producer – Tokyo Steel has raised its domestic scrap purchase prices first time in last three weeks’ time. As per latest price circular, scrap buying prices have moved up further by JPY 500/MT (USD 5) at three of its works (i.e. Tahara, Utsunomiya and Kyushu) which would be effective from tomorrow (i.e. 02nd Mar’18) for all grades of scrap in Japan. While Tokyo Steel kept prices unchanged for Okayama and Takamatsu Steel center.
Now H2 scrap fetches JPY 37,500/MT (USD 351) at largest work in central Japan-Tahara. While the same grade fetches JPY 36,500/MT (USD 342) at Utsunomiya works in north Japan, H2 bids placed at JPY 35,500/MT(USD 332) Kyushu works in west Japan while for its Okayama plant and Takamatsu Steel Center company keeps bids unchanged at JPY 35,000/MT and JPY 34,500/MT respectively.
Earlier to this, Tokyo steel witnessed its last price revision in which scrap prices were reduced by JPY 1000/MT at all its different works on 07 Feb’18. Thus, since then H2 scrap was being fetched at Tahara plant at JPY 37,000/MT(USD 347) in Japan.
Recently, South Korea’s leading EAF steelmaker Dongkuk steel has increased its purchase prices for Japanese ferrous scrap by JPY 1000/MT (USD 9) today. Its latest bid put for H2 grade scrap fetches at JPY 36,500/MT (USD 342), FoB Japan. While Hyundai Steel raised its import prices for Japanese ferrous scrap by JPY 1500/MT (USD 14) on 23rd Feb’18. Hyundai placed bid for H2 scrap at JPY 35,500/MT (USD 332), FoB Japan against its last bid reported bottoming out the scrap prices at JPY 34,000/MT (USD 318), FoB Japan. Hyundai steel heard to have secured 20,000 MT scrap at these levels.
Japanese scrap sellers from Kanto region recently increased scrap export prices further and market participants are expecting Japanese scrap prices likely to remain strong for coming days.
Tokyo Steel’s scrap purchase prices with effective from 02 Mar’18 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 37,500 | 35,000 | 35,500 | 36,500 | 34,500 |
| First Grade | 37,000 | 34,500 | 35,000 | 36,500 | 34,000 |
| Second Grade | 35,500 | 33,000 | 33,500 | 35,000 | 32,500 |
| New Cutting Press A | 41,000 | 37,000 | 37,500 | 38,000 | 36,500 |
| Shredder A | 38,000 | 35,500 | 36,000 | 37,000 | 35,000 |
| Shredder C | 37,500 | 35,000 | 35,500 | 36,500 | 34,500 |
Prices in Japanese Yen/MT for transport on land (Exchange Rate USD 1 = JPY 106.7)
Source: Tokyo Steel Reports
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