Japan’s leading EAF steel mini-mill – Tokyo Steel has announced price cut in its scrap purchase price. As per new price circular released, the steel manufacturer has cut prices by JPY 500/MT (USD 5) at its Utsunomiya plant against last set of prices. However, prices remain unchanged at other four plants and revised prices shall be effective from tomorrow i.e. 08 Sept’18.
Tokyo Steel fetches H2 scrap at JPY 37,000/MT (USD 334) for its Kanto region based works i.e. Utsunomiya and at JPY 36,500/MT for largest works in central Japan-Tahara. Bids for the same grade is at JPY 36,500/MT levels at Kyushu plant and JPY 35,500/MT at Okayama works in Western Japan while for its Takamatsu steel center company kept bids at JPY 35,000/MT in Southern Japan.
Tokyo Steel’s scrap purchase prices effective from 08 Sept’18 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 36,500 | 35,500 | 36,500 | 37,000 | 35,000 |
| First Grade | 36,000 | 35,000 | 36,000 | 37,000 | 34,500 |
| Second Grade | 34,500 | 33,500 | 34,500 | 35,500 | 33,000 |
| New Cutting Press A | 41,500 | 37,500 | 38,500 | 40,500 | 37,000 |
| Shredder A | 37,000 | 36,000 | 37,000 | 37,500 | 35,500 |
| Shredder C | 36,500 | 35,500 | 36,500 | 37,000 | 35,000 |
Prices in Japanese Yen/MT for transport on land
Source: Tokyo Steel Reports
Market awaits Kanto Tetsugen tender results- According to market sources report, Kanto tender for the month of September is scheduled in 11 Sept’18 which will set a clarity on prices. Kanto Tetsugen’- monthly ferrous scrap export tender for Aug’18 in the Kanto region in Japan. The average bids for Aug’18 recorded at JPY 34,860/MT (USD 314), FAS. On monthly premises, bids have edged up by JPY 530/MT M-o-M as against the average bids fetched at JPY 34,330/MT (USD 310),FAS in Jul’18.
Rising scrap inventories of South Korean EAF mills – Steel scrap inventories of South Korea based EAF mills increased significantly last week. Hyundai Steel’s and POSCO scrap inventories increased by 5-6%.
Hyundai Steel has changed the purchase pattern for scrap from bids to individual negotiations and is learned to be purchasing high grade scrap.
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