As per new price circular released, Japan’s leading EAF mini-mill – Tokyo Steel has lowered the domestic scrap purchase price by JPY 500/MT (USD 5) at all five works in Japan. New prices for all grades shall be effective from tomorrow (9th May’19).
The steelmaker has returned into the market after observing Golden week holidays for 10 days during 26th April-6th May and resumed operation by lowering scrap prices further on bearish local market sentiments.
With a recent price cut, the company will pay JPY 30,500/MT (USD 277) for H2 scrap delivered at Tahara plant in central Japan and Kyushu works in the Western region. While JPY 29,000/MT (USD 263) for H2 delivered to Utsunomiya plant in the Kanto region, JPY 29,500/MT for Okayama plant and JPY 28,000/MT (USD 254) at Takamatsu steel center.
Notably, as per Tokyo steel’s scrap prices maintained with SteelMint, H2 scrap prices of Utsunomiya works in Kanto area has fallen to JPY 29,000/MT hitting around 2 years low levels.
Most of EAF steelmakers held Japanese H2 prices flat in the range JPY 29,000-31,000/MT and likely to refill their scrap inventories in the upcoming days. Trade volumes remained very low amid holiday mood while H2 prices in the Gulf region reported at JPY 30,000-31,000/MT.
Tokyo Steel’s scrap purchase price effective from 9th May –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class (H2) | 30,500 | 29,500 | 30,500 | 29,000 | 28,000 |
| First Grade | 30,000 | 29,000 | 30,000 | 29,000 | 27,500 |
| Second Grade | 28,500 | 27,500 | 28,500 | 27,500 | 26,000 |
| New Breaking Press A | 34,000 | 31,500 | 32,500 | 31,000 | 30,000 |
| Shredder A | 32,000 | 30,000 | 31,000 | 29,500 | 28,500 |
| Shredder C | 31,500 | 29,500 | 30,500 | 29,000 | 28,000 |
Prices in Japanese Yen/MT for transport on land
Market awaits Kanto’s scrap export tender response – Most of the Japanese market participants are waiting for Kanto Tetsugen monthly scrap export tender, scheduled on 10th May to have more clarity on market direction. Participants remained uncertain whether prices will continue downtrend or rebound after reaching the bottom on the decrease in scrap inventories amid holidays.
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