Decline in scrap prices in Gulf Kanto region, on weaker export shipments over rising scrap inventories with EAF manufacturers continue to weigh down domestic scrap purchase prices in Japan.
Japan’s leading EAF steel producer – Tokyo Steel has reduced its domestic scrap purchase prices by Yen 500-1000/MT. The steel manufacturer has lowered purchase price for Japanese scrap by Yen 500/MT (USD 5) at its Okayama, Kyushu and Takamatsu Steel Centre. But for its Tahara and Utsunomiya factory bids have come down by Yen 1000/MT (USD 9). The revised prices shall be effective from tomorrow i.e. 4 Apr’18.
Now H2 scrap fetches JPY 36,000/MT (USD 340) at largest work in central Japan-Tahara. While the same grade fetches JPY 35,500/MT (USD 334) at Utsunomiya works in north Japan. While for its Okayama plant, Kyushu factory Takamatsu Steel Center Company bids are at JPY 33,500/MT at JPY 34,000/MT and JPY 33,000/MT respectively.
After the recent price cut, H2 scrap prices in Tahara plant have dropped to 4-month low as the price of Yen 36,000/MT was last seen on 06 Dec’17.
Scrap prices in Japan have softened amid decline in scrap prices in Kanto and Gulf regions. Also higher scrap inventories with EAF steel manufacturers than demand has also put scrap bids under pressure.
Prior to this, Tokyo Steel had slashed bids for Japanese scrap by Yen 1000/MT (USD 9) at all its works on 31 Mar’18.
Tokyo Steel’s scrap purchase prices with effective from 04 Apr’18 –
| Particulars | Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center |
| Special Class | 36,000 | 33,500 | 34,000 | 35,500 | 33,000 |
| First Grade | 35,500 | 33,000 | 33,500 | 35,500 | 32,500 |
| Second Grade | 34,000 | 31,500 | 32,000 | 34,000 | 31,000 |
| New Cutting Press A | 40,000 | 35,500 | 36,000 | 37,500 | 35,000 |
| Shredder A | 36,500 | 34,000 | 34,500 | 36,000 | 33,500 |
| Shredder C | 36,000 | 33,500 | 34,000 | 35,500 | 33,000 |
Prices in Japanese Yen/MT for transport on land
Source: Tokyo Steel Reports
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