Steelmaker makes 6th price cut in Nov; cuts prices by JPY 500-1000/MT (USD 4-9)
Japan’s leading EAF steel mini-mill – Tokyo Steel has slashed its scrap purchase prices for the sixth time in November. As per new price circular released, prices reduced by JPY 500/MT (USD 4) at Utsunomiya, Tahara and Kyushu plants and by JPY 1000/MT (USD 9) at Okayama works and Takamatsu Steel center respectively. New prices shall be effective from tomorrow.
Tokyo steel’s H2 prices stand at JPY 32,500/MT (USD 288) for largest plant Tahara in central Japan and at JPY 32,500/MT for Okayama works in western Japan. Bids for the same grade noted at JPY 31,500/MT for its Takamatsu steel center, JPY 34,000/MT for Kyushu plant and at JPY 33,500/MT for Utsunomiya plant.
Notably, H2 scrap prices at Tahara plant hit last 1 year low while at Utsunomiya plant located in Kanto region hit about last 7 month low in Japan.
Japan’s iron scrap prices have lowered sharply, on the other hand costing for auxiliary materials such as electrodes, ferroalloys and transportation costs remain high. Thus, steel mills have no choice than to keep finish steel prices supported. Local scrap demand remains supported amid Kanto’s export shipment of 5,320 MT scheduled today and few EAF steelmakers are operating in 3 shifts of production this week.
Japanese scrap export offers have also come under pressure. H2 export offers stand in the range JPY 33,000-33,500/MT (USD 288-296), FoB and H2 gulf prices at JPY 31,000-31,500/MT. However, buyers expectations remain around JPY 32,000-32,500/MT, FoB for H2.
Moreover, JPY recovered further as USD/JPY rate stands at 113 today as against 113.5 on 15th Nov’18.
Tokyo Steel’s scrap purchase price effective from 23rd Nov’18 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class (H2) | 32,500 | 32,500 | 34,000 | 33,500 | 31,500 |
| First Grade | 32,000 | 32,000 | 33,500 | 33,500 | 31,000 |
| Second Grade | 30,500 | 30,500 | 32,000 | 32,000 | 29,500 |
| New Cutting Press A | 37,500 | 34,500 | 36,000 | 37,000 | 33,500 |
| Shredder A | 33,500 | 33,000 | 34,500 | 34,000 | 32,000 |
| Shredder C | 33,000 | 32,500 | 34,000 | 33,500 | 31,500 |
Prices in Japanese Yen/MT for transport on land,
Source: Tokyo Steel Reports
South Korean SeAH Steel booked high grade Japanese scrap at declined prices – As per SteelDaily’s report, SeAh Besteel company booked Japanese Shindachi grade scrap at JPY 41,000/MT, CFR comprising some side rolls from the spot market negotiations recently. The steelmaker had presented bids for Shindachi at JPY 42,000/MT, CFR and Shredded at JPY 39,000/MT, CFR. Bids remained lowered by JPY 2000/MT than Hyundai Steel’s last contract. Hyundai’s bid for Shindachi scrap stands at JPY 40,500/MT, FoB.
While leading EAF steelmakers like Hyundai Steel, Welcome Steel, SeAH Steel, Deahan Steel, Korea Steel continued lowering domestic scrap purchase prices successively by KRW 5,000-10,000/MT (USD 4-9) pulling prices down on an average KRW 20,000-30,000/MT in last two weeks’ period.
Leave a Reply