After increasing scrap purchase prices at Tahara and Utsunomiya works a week ago, Tokyo Steel has raised prices at its Utsunomiya works again by JPY 500/MT amid strong Japanese scrap prices.
Japan’s leading EAF steel producer – Tokyo Steel has raised its domestic scrap purchase prices for the third time so far this month. As per latest price circular, scrap buying prices have moved up further by JPY 500/MT (USD 5) only at its Utsunomiya works which would be effective from tomorrow (i.e. 20th Mar’18) for all grades of scrap in Japan. While Tokyo Steel kept prices remain unchanged for Tahara, Okayama, Kyushu and Takamatsu Steel center.
Now H2 scrap fetches JPY 38,000/MT (USD 358) at largest work in central Japan-Tahara. While the same grade fetches JPY 37,500/MT (USD 354) at Utsunomiya works in north Japan. While for its Okayama plant, Kyushu factory Takamatsu Steel Center Company keeps bids unchanged at JPY 35,000/MT at JPY 35,500/MT and JPY 34,500/MT respectively.
Earlier to this, Tokyo Steel raised prices at two major works (Tahara and Utsunomiya) by JPY 1000/MT (USD 9) for high grade scrap (New Cutting Press A & B) and by JPY 500/MT (USD 5) for other major grades on 13th Mar’18 keeping prices at other three factories unchanged for all grades of scrap.
Tokyo Steel’s scrap purchase prices with effective from 20 Mar’18 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 38,000 | 35,000 | 35,500 | 37,500 | 34,500 |
| First Grade | 37,500 | 34,500 | 35,000 | 37,500 | 34,000 |
| Second Grade | 36,000 | 33,000 | 33,500 | 36,000 | 32,500 |
| New Cutting Press A | 42,000 | 37,000 | 37,500 | 39,500 | 36,500 |
| Shredder A | 38,500 | 35,500 | 36,000 | 38,000 | 35,000 |
| Shredder C | 38,000 | 35,000 | 35,500 | 37,500 | 34,500 |
Prices in Japanese Yen/MT for transport on land
Source: Tokyo Steel Reports
Also, South Korea’s major steel mill – Hyundai Steel raised bids for high-grade Japanese scrap by USD 9/MT on 16th Mar’18. Its latest bids for SB scrap increased to JPY 43,000/MT (USD 406) and for Shindachi Press scrap to JPY 44,000/MT (USD 415) on FOB Japan basis respectively. Prices for H2 grade scrap kept unchanged at JPY 37,000/MT (USD 349), FoB Japan. While prices for low-grade scrap H1/2(50:50), HS and Shredded kept unchanged over easier availability from domestic markets.
According to reports, Hyundai bid for 60,000 MT scrap comprising half Shindachi grade and another half H2 grade scrap respectively.
Thus the demand for Japanese high-grade scrap is quite robust following which prices for high-grade scrap are rising rapidly than other lower grades in Japan. Currently, Dongkuk Steels’ H2 scrap bids (37,500/MT, FoB Japan) are still higher than bids placed by Hyundai Steel by JPY 500/MT (USD 5).
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