Japan’s leading EAF steel mini-mill – Tokyo Steel has today announced reduction in its scrap purchase prices. This is 2nd price cut made by the mill in a week’s time. Prior to this the steel mill had slashed prices by JPY 500-1000/MT on 31 Oct’18.
In its price cut announced today prices have come down by JPY 500-1500/MT varying as per grades. At central Japan’s Tahara works prices reduced by JPY 1500/MT for two grades (Electricity A and Special A) and by JPY 1000/MT for rest all grades. Okayama factory observed price cut by JPY 1000/MT While other plants witnessed JPY 500/MT price cut for all scrap grades.The revised prices are effective from 3rd Nov’18.
Tokyo steel’s H2 price stands at JPY 38,000/MT (USD 337) at western Japan plant, Kyushu and at JPY 37,000/MT for Okayama works while prices at largest plant Tahara in central Japan and Utsunomiya plant in Kanto region stand at JPY 36,500/MT and JPY 37,000/MT respectively. Bids for the same grade noted at JPY 36,500/MT for its Takamatsu steel center.
Although ferrous scrap market has entered the adjustment phase, finish steel manufacturers are unlikely to soften the sales attitude due to the rise in semi-finish prices and transportation costs in Japan at the moment.
Tokyo Steel’s scrap purchase prices effective from 3rd Nov’18 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 36,500 | 37,000 | 38,000 | 37,000 | 36,500 |
| First Grade | 36,000 | 36,500 | 37,500 | 37,000 | 36,000 |
| Second Grade | 34,500 | 35,000 | 36,000 | 35,500 | 34,500 |
| New Cutting Press A | 41,500 | 39,000 | 40,000 | 40,500 | 38,500 |
| Shredder A | 37,500 | 37,500 | 38,500 | 37,500 | 37,000 |
| Shredder C | 37,000 | 37,000 | 38,000 | 37,000 | 36,500 |
Prices in Japanese Yen/MT for transport on land;
Source: Tokyo Steel Reports
Steel Scrap inventory on major South Korean mills remain on higher side – Price of Japanese steel scrap is likely to fall further as scrap inventory with major mills has witnessed increase. Retailers continue to release scrap inventories rather than stockpiling them.
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