Following increasing demand and scrap prices in Japan’s domestic market, Tokyo Steel has raised scrap purchase prices for all grades at Utsunomiya plant and for high-grade scrap at Tahara plant by JPY 1000/MT (USD 9).
Japan’s leading EAF steel mini-mill – Tokyo Steel has revised its domestic scrap purchase prices twice in a weeks’ time. As per new price circular, the steel manufacturer has raised the prices for all grades of scrap at Utsunomiya work by JPY 1000/MT (USD 9) which is based in the Kanto region in north Japan. While Tokyo raised prices by JPY 1000/MT for high-grade scrap like new cutting press A/B at its largest work in central Japan-Tahara. The revised prices shall be effective from tomorrow i.e. 16th May’18.
The prices for all grades of scrap remained same as the earlier for Okayama plant, Kyushu factory and Takamatsu Steel center along with the prices for low-grade scrap at Tahara plant in Japan.
Now H2 scrap fetches JPY 34,500/MT (USD 314) at Utsunomiya. While for its Tahara works, Okayama plant, Kyushu factory and Takamatsu Steel center H2 prices assessed stable at JPY 35,000/MT, JPY 31,500/MT, JPY 32,000/MT and JPY 31,000/MT respectively.
Tokyo steel has revised the prices twice in the last five days. It witnessed last price hike on 12th May’18 in which prices were hiked by JPY 500/MT (USD 5) at two of its works -Tahara and Utsunomiya in Japan.
In line with an increase of USD 12/MT M-o-M in average bids fetched in Kanto Tetsugen tender, Kansai scrap tender for May’18 has also fetched bids higher by JPY 500/MT (USD 5) M-o-M in Japan. It seems that on witnessing the uplift in the bids fetched for H2 in both scrap export tenders, Japanese domestic scrap market prices are rising sharply. The demand for high-grade scrap is expected to be enhanced in the market.
Now Japan’s H2 scrap export prices assessed in the range of 34,000-35,000/MT (USD 310-319) FoB for Kanto region while H2 prices stood at around JPY 33,500-34,500/MT (USD 307-311) for Gulf region in Japan.
Average scrap purchase prices for leading EAF steelmakers based in Tokyo, Osaka and Nagoya regions in Japan yesterday assessed at around JPY 33,500/MT for H2 and at around JPY 37,400/MT for New cutting press respectively.
Tokyo steel could have raised the prices on the expectations of increasing bids for Japanese scrap from South Korean steelmakers as demand for scrap is improving in South Korea.
Tokyo Steel’s scrap purchase prices with effective from 16 May’18 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 35,000 | 31,500 | 32,000 | 34,500 | 31,000 |
| First Grade | 34,500 | 31,000 | 31,500 | 34,500 | 30,500 |
| Second Grade | 33,000 | 29,500 | 30,000 | 33,000 | 29,000 |
| New Cutting Press A | 40,000 | 33,500 | 34,000 | 36,500 | 33,000 |
| Shredder A | 35,500 | 32,000 | 32,500 | 35,000 | 31,500 |
| Shredder C | 35,000 | 31,500 | 32,000 | 34,500 | 31,000 |
Prices in Japanese Yen/MT for transport on land
Source: Tokyo Steel Reports
South Korean scrap purchase prices are expected to increase further – Market participants pointed out that South Korean steel mills are likely to raise their bids for Japanese scrap this week. Last week’s bids from Hyundai Steel and Dongkuk steel remained at JPY 33,000/MT, FoB for Japanese H2 which seems less workable against current prices in Japan.
South Korea leading steelmakers have already stopped their continuous price cuts for scrap over which the local scrap prices have stabilized in South Korea which are likely to increase further in the coming days with improving demand and widening price gap between local and imported.
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