This is the 2nd time that the steel maker has cut scrap purchase price in a week’s time.
Japan’s leading steel producer Tokyo Steel Manufacturing has further reduced its scrap buying prices by Yen 1000/MT (USD 9) for all of its works today. As per new price circular, new prices would be effective from today (i.e. 07th Oct’17) for all grades of scrap at all its five works of the company in Japan.
After maintaining successive uptrend in its domestic scrap purchase prices since mid of Jun’17, the steel maker has reduced scrap buying prices successively 3rd time within last 8 days. This has dragged total prices down by USD 18-20/MT from the peak bid prices stood around USD 293-295/MT (Yen 33,000) in last 15 days.
Prior to this, the company declined its buying prices for all grades of ferrous scrap at all its plants by Yen 500 (USD 4) on 05th Oct’17 and at its Tahara and Utsunomiya works by Yen 500/MT on 30th Sept’17 respectively.
Now H2 scrap fetches Yen 31,000/MT(USD 275) at largest work in central Japan-Tahara, Utsunomiya work in north of Tokyo, Okayama and Kyushu works in west Japan respectively. While Japanese H2 Scrap fetches Yen 30,500/MT for its Takamatsu Steel Center in Japan.
As per sources owing to softening sentiments in the global market, foreign buyers have reduced their bids. Following this, many electric arc furnaces have lessened their scrap purchase prices successively.
Tokyo Steel’s scrap purchase prices with effective from 07 Oct’17 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 31,000 | 31,000 | 31,000 | 31,000 | 30,500 |
| First Grade | 30,500 | 30,500 | 30,500 | 31,000 | 30,000 |
| Second Grade | 29,000 | 29,000 | 29,000 | 29,500 | 28,500 |
| Shredder A | 31,500 | 31,500 | 31,500 | 31,500 | 31,000 |
| Shredder C | 31,000 | 31,000 | 31,000 | 31,000 | 30,500 |
Prices in Japanese Yen/MT for transport on land
Source: Tokyo Steel Reports
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