Tokyo Steel has announced hike in purchase prices for all grades of scrap by JPY 500/MT (USD 5) at Utsunomiya work based in Kanto region today while the prices remain unchanged at other four works in Japan.
Japan’s leading EAF steel mini-mill – Tokyo Steel has revised its domestic scrap purchase prices fourth time in last 10 days’ period. As per new price circular released, the steel manufacturer has raised prices at Utsunomiya work by JPY 500/MT (USD 5) which is based in the Kanto region in north Japan. Revised prices for all grades of scrap shall be effective from tomorrow i.e. 23th May’18.
Now H2 scrap fetches at JPY 36,000/MT (USD 324) for Utsunomiya and JPY 35,500/MT at Tahara works. While prices for all grades of scrap remained same as the earlier for South-Western works like Okayama plant, Kyushu factory and Takamatsu Steel center in Japan. The price gap between Kanto region’s Utsunomiya plant and Western Okayama plant widened to JPY 4,500/MT (USD 40) for the same grade H2 in Japan.
Tokyo Steel could have raised the prices further on the major factors like strengthening scrap demand and rising local scrap prices in Japan, also local scrap prices in the largest importer market i.e. South Korea kept moving up amid hikes by leading steelmakers in the country.
Now Japan’s H2 scrap export prices assessed in the range of 35,000-36,000/MT (USD 315-324) FoB for Kanto region while H2 prices stood at around JPY 34,500-35,500/MT (USD 310-319) for Gulf region in Japan.
Tokyo Steel’s scrap purchase prices effective from 23 May’18 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 35,500 | 31,500 | 32,000 | 36,000 | 31,000 |
| First Grade | 35,000 | 31,000 | 31,500 | 36,000 | 30,500 |
| Second Grade | 33,500 | 29,500 | 30,000 | 34,500 | 29,000 |
| New Cutting Press A | 40,500 | 33,500 | 34,000 | 38,000 | 33,000 |
| Shredder A | 36,000 | 32,000 | 32,500 | 36,500 | 31,500 |
| Shredder C | 35,500 | 31,500 | 32,000 | 36,000 | 31,000 |
Prices in Japanese Yen/MT for transport on land
Source: Tokyo Steel Reports
Japanese Yen gains slightly against USD in last two days – Today USD/JPY exchange rate today stood at 110.9 which was trading at around 111.4 yesterday. However, earlier to this JPY depreciated by almost 3.55% against USD in the last one months’ time. Which was trading at around 107.2 a month ago. Fluctuating yen has also influenced scrap prices to increase in Japan.
South Korean domestic scrap prices increased further amid declining scrap inventories – Leading steelmakers like Dongkuk, Daehan, Korean, YK Steel have witnessed second round of price hike by KRW 10,000-20,000/MT (USD 9-18) recently amid sharply falling scrap inventories available in hand with these steelmakers in South Korea. Hyundai steel heard to have booked 20,000 MT Bulk Russian scrap USD 355/MT, CFR as the prices from Russian sellers dropped against USD 370/MT levels during the last couple of weeks’ report. On the other hand, Hyundai steel had canceled last weeks’ bid for Japanese scrap which likely to present the bids for this week.
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