Japanese scrap export prices continued to come down sharply in recent deals reported, with prices now down to March’20 levels, plunging even quicker than it had increased over the last 2.5 months.
Among the latest deals, South Korea’s largest steelmaker Hyundai steel has booked a bulk cargo for Japanese H2 scrap at JPY 23,500/t ($ 220) FoB Japan basis, which is the lowest price in almost 3 months. Another booking by a Korean mill of 10,000 t of H2 scrap at JPY 24,000/t ($ 225) FoB Japan was reported. Shipments for these bookings are expected for Aug’20.
Prior to this, another major steelmaker Dongkuk Steel had booked a small batch of 3,000t Japanese H2 scrap, at JPY 26,500/t ($249/t) CFR South Korea, which translates to around close to JPY 24,500/t ($ 229) FoB Japan, earlier this week.
The prices had peaked to JPY 27,000-27,500/t FoB Japan levels earlier last week, before plunging by JPY 3500-4000/t ($ 33-37) in just over a week.
Tokyo Steel observes 2nd price cut for Utsunomiya (Kanto) in 3 days
Over the last 1.5 months, Japanese domestic prices in the Kanto region had shot up in line with rising export offers on low availability. Hence it was certain that the Kanto region domestic scrap prices will drop post the sharp plummet in Japanese export offers over the last week.
Japan’s Tokyo steel has again cut its domestic scrap purchase price for Utsonomiya plant in the Kanto region by JPY 1000/t, following the first price cut by JPY 500/t 2 days ago, thus dropping scrap prices to Utsunomiya plant by a total of JPY 1500/t in 3 days. while keeping bids unchanged for the remaining four works.
Tokyo Steel’s bids for scrap purchase from 27th June’2020
| Name of Work of Tokyo Steel | |||||
| Scrap Grade | Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center |
| Special Class (H2) | 25,000 | 24,500 | 25,000 | 25,000 | 23,500 |
| First Grade | 24,500 | 24,000 | 24,500 | 25,000 | 23,000 |
| Second Grade | 23,000 | 22,500 | 23,000 | 23,500 | 21,500 |
| New Breaking Press A | 28,000 | 25,500 | 26,500 | 27,000 | 24,500 |
| Shredder A | 26,500 | 25,000 | 25,000 | 25,500 | 23,500 |
| Shredder C | 26,000 | 24,500 | 25,000 | 25,000 | 23,500 |
Price in JPY
Source: Tokyo Steel Reports
Leave a Reply