Following a jump in bids in monthly Kanto tender concluded today, Tokyo Steel hiked scrap prices further by JPY 500/MT (USD 4.5) at three of its plants, H2 price stands at JPY 35,000/MT for Utsunomiya, Tahara and Kyushu work.
As per new price circular released, Japan’s leading EAF steel mini-mill – Tokyo Steel has hiked domestic scrap purchase price by JPY 500/MT (USD 4.5) at three of its facilities for all grades effective from tomorrow (13th Mar’19), except Utsunomiya and Kyushu works for which company was paying already high.
With the recent hike, the company will pay JPY 35,000/MT (USD 314) for H2 scrap delivered to Utsunomiya plant in the Kanto region, Tahara in the central area and Kyushu in western Japan. While revised H2 price stands JPY 33,000/MT at Okayama and JPY 31,000/MT at Takamatsu steel center.
Notably, this is a 4th price hike the company has undergone in Mar’19 amid tight supply and demand situation while Okayama plant has registered 12th successive price hike since mid-Feb’19. Many EAF steelmakers in Japan have already started stockpiling ahead of Golden week holidays to ensure smooth operation during the end of April in Japan which keeps price outlook strong in the near term.
Japan’s Kanto tender observed a sharp surge in bids successively for the second month in Mar’19. Average bid in Mar’19 has moved up sharply by JPY 2,155/MT (USD 19.4) to JPY 34,010/MT (USD 305) for a total 13,200 MT H2 auctioned against the average bid at JPY 31,855/MT (USD 288), FAS in Feb’19 while that of JPY 28,775/MT in Jan’19.
Tokyo Steel’s scrap purchase price effective from 13th Mar’19 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class (H2) | 35,000 | 33,000 | 35,000 | 35,000 | 31,000 |
| First Grade | 34,500 | 32,500 | 34,500 | 35,000 | 30,500 |
| Second Grade | 33,000 | 31,000 | 33,000 | 33,500 | 29,000 |
| New Cutting Press A | 40,000 | 35,000 | 37,000 | 38,500 | 33,000 |
| Shredder A | 36,500 | 33,500 | 35,500 | 35,500 | 31,500 |
| Shredder C | 36,000 | 33,000 | 35,000 | 35,000 | 31,000 |
Prices in Japanese Yen/MT for transport on land,
Source: Tokyo Steel Reports
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