Japan’s leading EAF mill- Tokyo Steel has been raising its bids for scrap purchase aggressively this month. The company has already announced eight price hikes so far in Dec’20. In today’s price increment announced, the company has raised prices for its four works upto JPY 1,500/t ($15), effective from 19th Dec’20. The company adjusted its buying price idea to the regional scrap market reality in order to secure the required volumes domestically.
After today’s price revision, the company would pay JPY 39,500/t ($382) H2-scrap delivered at Okayama, JPY 37,000/t ($358) for Kyushu, Utsunomiya and Takamatsu works. However, the company has kept bid prices unchanged for the Tahara plant and stood at JPY 40,000/t ($387). Notably, prices for Tahara are highest since Sep’17, as per data maintained with SteelMint.
The company has raised bids for H2 scrap at its Utsunomiya plant by a total of JPY 8,000/t so far in Dec’20.
Price in JPY
Source: Tokyo Steel report
Japanese scrap export offers up further – Japanese scrap offers to South Korea have increased significantly in last two weeks. Currently, suppliers are quoting around JPY 40,000-43,000/t FoB basis for H2 to South Korea. SteelMint’s assessment for Japanese H2 stands at JPY 42,000/t FoB level, up by JPY 3,500/t w-o-w.
Japanese scrap prices rise in recent bookings for Vietnam – Vietnam based steel mills have been booked two Japanese scrap cargoes this week. The cargo has booked for 3,000 t of Japanese H2 scrap at $440/t CFR Vietnam, while another cargo comprises of 5,000 t at $435/t CFR Vietnam basis, sources have reported SteelMint. Prices for Japanese H2 have moved up by $15-20 as against the beginning of this week. Despite high imported scrap prices, domestic production and sales have increased on a monthly basis.
South Korean steel mills book over 90,000 t of Japanese scrap – South Korean mills has booked Japanese bulk scrap cargo earlier this week, on bid presented by Hyundai Steel towards the closing of last week. Hyundai Steel has booked around 60,000 t for high-grade scrap, whereas Dongkuk Steel has concluded deal for 32,000 t of Japanese H1 and H2. The deal price was reported around JPY 40,000/t FoB for Japanese H2, as per Steel Daily.
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