After maintaining successive uptrend in its scrap purchase price since mid of Jun’17, the steel maker has reduced prices by Yen 500/MT towards end of Sept’17 owing to decline in global prices.
Japan’s leading steel producer Tokyo Steel Manufacturing has witnessed fall in its scrap buying prices after successive increase since mid Jun’17. As per recent reports in price revision done on 30th Sept’17, the company has reduced prices by Yen 500/MT (USD 4) for its two works than previous bids. Earlier to this on 20th and 23rd Sept’17 prices were lifted by Yen 1,000/MT (USD 9) and Yen 500/MT respectively for its west Japan works.
As per new revision, Tokyo Steel declined its buying prices for all grades of ferrous scrap only at its Tahara and Utsunomiya works. However, prices at other works remain unchanged. Notably, this was fifth price revision company has gone through for domestic scrap buying prices in the single month of Sept’17.
Presently bid prices for all grades of scrap delivered at largest work Tahara in central Japan and to its Utsunomiya works in north of Tokyo have come down by Yen 500/MT and now Japanese special class H2 scrap fetches Yen 32,500/MT at Tahara, Utsunomiya, Okayama and Kyushu works of Tokyo Steel respectively. While Japanese H2 Scrap fetches Yen 32,000/MT for its Takamatsu Steel Center in Japan.
As per sources owing to softening sentiments in global market, foreign buyers have reduced their bids. Following this, many electric arc furnaces have lessened their scrap purchase prices.
The company is Japan’s largest producer of H-Beams and top electric-arc steel mill. Its production also devoted to sheet piles, jumbo H-beams, and a variety of flat-steel products. (Hot coils, pickled and oiled coils, galvanized coils, heavy steel plates, etc.)Tokyo steel operates with Tahara, Okayama, Kyushu and Utsunomiya plants and Takamatsu steel center.
Tokyo Steel’s scrap purchase prices with effective from 30 Sept’17 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 32,500 | 32,500 | 32,500 | 32,500 | 32,000 |
| First Grade | 32,000 | 32,000 | 32,000 | 32,500 | 31,500 |
| Second Grade | 30,500 | 30,500 | 30,500 | 31,000 | 30,000 |
| Shredder A | 33,000 | 33,000 | 33,000 | 33,000 | 32,500 |
| Shredder C | 32,500 | 32,500 | 32,500 | 32,500 | 32,000 |
Prices in Japanese Yen/MT for transport on land
Source: Tokyo Steel Reports
As per recent customs data, Japan exported 5.33 MnT ferrous scrap during the period of first eight months of CY17 (Jan-Aug’17). A drop of 11 % Y-o-Y has noted in its exports against 5.97 MnT ferrous scrap exports in the same period in CY16.
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