As per new price circular released, Japan’s leading EAF steel mini-mill – Tokyo Steel has observed another price cut for domestic scrap purchase by JPY 500/MT (USD 5) at all five of its works.
Japan’s domestic market seems to have reopened today after year-end holidays. New prices shall be effective from tomorrow.
The steelmaker will pay JPY 31,000/MT (USD 286) for H2 scrap delivered to Utsunomiya plant situated in the Kanto region. While H2 price at the largest plant, Tahara stands at JPY 30,000/MT.
Revised H2 price for Western Japan works stands JPY 26,000/MT at Takamatsu steel centre, JPY 27,500/MT at Okayama works and JPY 30,500/MT at Kyushu works respectively.
Tokyo Steel’s H2 prices fell by a total JPY 11,000/MT and JPY 6,500/MT at Okayama and Utsunomiya works from a peak achieved at JPY 38,500/MT and JPY 37,500/MT during the last week of Oct’18.
Notably, the Japanese Yen has observed sharp appreciation by around 4% against USD in the last 2-3 weeks’ time. USD/JPY stands at 108.2 today which was trading at around 113.5 levels on 17th Dec’18.
A sudden rise in JPY against USD could support export offers in upcoming days. Participants are waiting for Kanto tender for more clarity on prices.
Tokyo Steel’s scrap purchase price effective from 8th Jan’18 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class (H2) | 30,000 | 27,500 | 30,500 | 31,000 | 26,000 |
| First Grade | 29,500 | 27,000 | 30,000 | 31,000 | 25,500 |
| Second Grade | 28,000 | 25,500 | 28,500 | 29,500 | 24,000 |
| New Cutting Press A | 35,000 | 29,500 | 32,500 | 34,500 | 28,000 |
| Shredder A | 31,500 | 28,000 | 31,000 | 31,500 | 26,500 |
| Shredder C | 31,000 | 27,500 | 30,500 | 31,000 | 26,000 |
Prices in Japanese Yen/MT for transport on land,
USD/JPY = 108.19
Source: Tokyo Steel Reports
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