As per new price circular released, Japan’s leading EAF steel mini-mill – Tokyo Steel has lowered domestic scrap purchase price by JPY 500/MT (USD 4.5) at Utsunomiya work located in the Kanto region. On the other hand, prices at Takamatsu Steel Center increased by JPY 500/MT and remained unchanged at other three works i.e. Tahara, Okayama and Kyushu in Japan. New prices for all grades shall be effective from tomorrow (28th Mar’19).
With a recent price revision, the company will pay JPY 34,500/MT (USD 312) for H2 delivered to Utsunomiya plant in the Kanto region while JPY 32,000/MT (USD 289) at Takamatsu steel center.
Notably, Tokyo Steel has lowered H2 price after almost 3 months time at Utsunomiya work in Kanto. Earlier on 8th Jan’19, H2 prices hit short term low at JPY 31,000/MT which had increased to JPY 35,000/MT and remained stable for almost a months’ time. Japanese H2 prices are presently hovering in the range JPY 34,000-35,000/MT, FoB Japan, however, overseas demand remains dull from South Korea and Vietnamese leading EAF steelmakers.
Japanese Yen has remained volatile against USD in the last seven days. JPY had appreciated by 1.5% to 109.8 levels against 111.5 a week ago against USD. while USD/JPY rate stands at 110.3 level today.
Tokyo Steel’s scrap purchase price effective from 28th Mar’19 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class (H2) | 35,000 | 33,500 | 35,000 | 34,500 | 32,000 |
| First Grade | 34,500 | 33,000 | 34,500 | 34,500 | 31,500 |
| Second Grade | 33,000 | 31,500 | 33,000 | 33,000 | 30,000 |
| New Cutting Press A | 40,000 | 35,500 | 37,000 | 38,000 | 34,000 |
| Shredder A | 36,500 | 34,000 | 35,500 | 35,000 | 32,500 |
| Shredder C | 36,000 | 33,500 | 35,000 | 34,500 | 32,000 |
Prices in Japanese Yen/MT for transport on land,
Source: Tokyo Steel Reports
Market observes concern on upcoming Golden week holidays – Japanese market is expected to observe closure of shipments for almost 10 days period during Golden week holidays (27th April-6th May). Although electricity rates will be cheaper, the continuous operation for EAF seems burdensome during this period.
Difficulties in procurement and delivery of steel scrap and finished steel products added to which labour shortage during holidays are deepening worries of steelmakers in the market. Few companies may also cut their production levels to deal with this situation.
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