Japan’s leading EAF steel mini-mill – Tokyo Steel slashed its scrap purchase prices fourth time in November. As per new price circular released, the steel manufacturer has cut prices by JPY 1000/MT (USD 9) again at all five works.Prices shall be effective from tomorrow.
In last five successive price cuts since 31st Oct’18, prices have reduced by JPY 3000-4500/MT (USD 26-39/MT) from a temporary peak achieved during Oct’18.
Tokyo steel’s H2 price stands at JPY 35,500/MT (USD 311) for Kyushu plant and at JPY 34,000/MT for Okayama works in western Japan while prices stand at JPY 33,500/MT for largest plant Tahara in central Japan. Bids for the same grade noted at JPY 33,500/MT for its Takamatsu steel center and at JPY 34,500/MT for Utsunomiya plant in the Kanto region respectively.
Japanese scrap purchase prices have come under pressure and may fall further as scrap yards are pushing to offload cargoes and dull market sentiments.
Also, JPY depreciated against USD in a weeks’ time, USD/JPY rate stands 114 levels today as against 113.2 a week ago.
Tokyo Steel’s scrap purchase prices effective from 13th Nov’18 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class (H2) | 33,500 | 34,000 | 35,500 | 34,500 | 33,500 |
| First Grade | 33,000 | 33,500 | 35,000 | 34,500 | 33,000 |
| Second Grade | 31,500 | 32,000 | 33,500 | 33,000 | 31,500 |
| New Cutting Press A | 38,500 | 36,000 | 37,500 | 38,000 | 35,500 |
| Shredder A | 34,500 | 34,500 | 36,000 | 35,000 | 34,000 |
| Shredder C | 34,000 | 34,000 | 35,500 | 34,500 | 33,500 |
Prices in Japanese Yen/MT for transport on land,
Source: Tokyo Steel Reports
South Korean steelmakers cut domestic scrap prices further – Leading EAF steelmakers like Hyundai Steel, YK Steel, SeAH Steel, Posco, Deahan, Korea Steel have recently cut domestic scrap purchase prices by KRW 5,000-10,000/MT. Hyundai Steel’s domestic grade A scrap prices reported at KRW 360,000/MT (USD 317/MT).
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