As per new price circular released, Japan’s leading EAF mini-mill – Tokyo Steel has lowered the domestic H2 scrap purchase price by JPY 500/MT (USD 5) at four of its five works in Japan. New prices for all grades shall be effective from tomorrow (12th June’19). Following the lowering of bids in the monthly scrap export tender concluded today, the steelmaker makes the second price cut so far in Jun’19.
The steelmaker had last revised its scrap purchase price on 1st Jun’19, while this the 9th successive price lowering by the company since mid-April, as the market continues observing weak sentiments.
With the recent price cut, the company will pay JPY 29,500/MT (USD 271) for H2 scrap delivered at Tahara plant in central Japan and Kyushu works in the Western region while JPY 28,500/MT (USD 262) and JPY 28,000/MT (USD 258) for Okayama plant and Takamatsu steel center respectively. For H2 scrap delivered to Utsunomiya plant in the Kanto region, price remains unchanged at JPY 29,000/MT (USD 267) since 9th May 19, remaining at 2 year low levels.
Notably, the steelmaker has lowered price for high-grade scrap ‘New breaking press A’ delivered at Tahara Plant by JPY 1000/MT to JPY 32,500/MT (USD 299) from JPY 33,500/MT earlier, further narrowing the difference between low grade (H2) and high-grade scrap to just JPY 3000/MT (USD 28).
The domestic market continues to remain weak amid no strong reason to support the prices. With limited demand from importers in South East Asia and low domestic demand, Japanese scrap prices are less expected to jump in the near future.
Kanto monthly scrap tender fetches bid lower by USD 15 – Japan’s monthly ferrous scrap export tender, ‘Kanto Tetsugen’ concluded today (11th Jun’19) with average bids falling by USD 15/MT against last month on account of global price correction and weak domestic sentiments. Total of 20,300 MT of scrap was auctioned with four winning bids presented at JPY 28,967/MT (USD 267) average against PY 30,597/MT (USD 282) in May’19.
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class (H2) | 29,500 | 28,500 | 29,500 | 29,000 | 27,500 |
| First Grade | 29,000 | 28,000 | 29,000 | 29,000 | 27,000 |
| Second Grade | 27,500 | 26,500 | 27,500 | 27,500 | 25,500 |
| New Breaking Press A | 32,500 | 30,500 | 31,500 | 31,000 | 29,500 |
| Shredder A | 31,000 | 29,000 | 30,000 | 29,500 | 28,000 |
| Shredder C | 30,500 | 28,500 | 29,500 | 29,000 | 27,500 |
Price in JPY/MT
Source: Tokyo Steel Reports
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