Japan’s leading EAF steel mini-mill – Tokyo Steel has observed another price cut for domestic scrap purchase yesterday at two of its works. New prices shall be effective from today.
As per new price circular released, scrap prices slashed by JPY 500/MT (USD 4.5) at Okayama plant and Takamatsu Steel Center. While prices kept unchanged at other 3 works i.e. Tahara works in central Japan, Kyushu plant in the Western region and Utsunomiya works in the Kanto region.
Revised H2 scrap price is JPY 28,000/MT (USD 254) at Okayama plant and JPY 26,500/MT at Takamatsu steel center while prices stand unchanged at JPY 31,500/MT (USD 285) for Utsunomiya plant and JPY 30,500/MT for Tahara works.
Prices at Okayama plant reached 16 months low as earlier to this JPY 28,000/MT levels was last seen in Aug’17. The price gap between Okayama and Utsunomiya region works broadened to JPY 3,500/MT now.
JPY gains around 3% in last two weeks’ period against USD – Japanese Yen has appreciated to 110.4 levels today against USD. Which was trading at around 113.5 levels on 14th Dec’18.
After witnessing successive cuts in early December the company did not observe price revision after 14th Dec in anticipation of bottoming out of prices. However, there seems an impact of the year-end lull in local markets and the appreciation of JPY.
Tokyo Steel’s scrap purchase price effective from 26th Dec’18 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class (H2) | 30,500 | 28,000 | 31,000 | 31,500 | 26,500 |
| First Grade | 30,000 | 27,500 | 30,500 | 31,500 | 26,000 |
| Second Grade | 28,500 | 26,000 | 29,000 | 30,000 | 24,500 |
| New Cutting Press A | 35,500 | 30,000 | 33,000 | 35,000 | 28,500 |
| Shredder A | 32,000 | 28,500 | 31,500 | 32,000 | 27,000 |
| Shredder C | 31,500 | 28,000 | 31,000 | 31,500 | 26,500 |
Prices in Japanese Yen/MT for transport on land, USD/JPY = 110.3
Source: Tokyo Steel Reports
South African scrap cargo arrives at Tokyo Steel – As per Japan Metal Daily reports, Tokyo Steel had booked around 27,000 MT of scrap from South Africa. This cargo has recently arrived in Japan. Out of which 60% tonnages will be unloaded at Okayama plant and remaining 40% will be used at Tahara plant.
Leave a Reply