Tokyo Steel has announced another price hike for domestic scrap purchase at Utsunomiya work in Kanto region. Prices have also moved up for two grades of scrap at Tahara work.
Japan’s leading EAF steel mini-mill – Tokyo Steel has revised its domestic scrap purchase prices fifth time in May’18. 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. 30th May’18. Since five price hikes announced, Tokyo Steel Utsunomiya prices have increased by JPY 3500/MT.
Now H2 scrap fetches at JPY 36,500/MT (USD 335) 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 5000/MT (USD 45) for the same grade H2 in Japan.
Also, Tokyo has hiked purchase prices for two grades of scrap at Tahara works in central Japan. Prices have raised by JPY 1000/MT to JPY 38,500/MT for grade Electricity-A and by JPY 500/MT to JPY 36,700/MT for grade Special-A.
Although the demand for domestic scrap remained strong in Japan, scrap exports to largest importer South Korea have significantly dropped on rebar production cuts by South Korean steelmakers.
Japan’s H2 scrap export offers from suppliers assessed stable 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 30th 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 | 36,500 | 31,000 |
| First Grade | 35,000 | 31,000 | 31,500 | 36,500 | 30,500 |
| Second Grade | 33,500 | 29,500 | 30,000 | 35,000 | 29,000 |
| New Cutting Press A | 40,500 | 33,500 | 34,000 | 38,500 | 33,000 |
| Shredder A | 36,000 | 32,000 | 32,500 | 37,000 | 31,500 |
| Shredder C | 35,500 | 31,500 | 32,000 | 36,500 | 31,000 |
Prices in Japanese Yen/MT for transport on land
Source: Tokyo Steel Reports
South Korean domestic scrap prices stable amid plunged demand – South Korean domestic scrap prices witnessed stability after increasing by KRW 25,000-30,000/MT (USD 22-27) over the slowdown in scrap purchases from steel mills. Leading steelmakers like Hyundai and Dongkuk steel have aggressively implementing rebar production cuts to maintain their deficit and supply-demand gap, resulting in the sharp fall in scrap purchases in South Korea both in Domestic and import markets.
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