As per new price circular released, Japan’s leading EAF mini-mill – Tokyo Steel has lowered its scrap purchase price by JPY 500/MT (USD 5) at its Tahara Plant and Utsunomiya works today, while keeping the prices for the other 3 works unchanged. The new prices for all grades shall be effective from tomorrow (4th Sept’19).
After the said price cut, the company will pay JPY 25,000/MT (USD 235) for H2 scrap delivered at Tahara plant in Central Japan and JPY 25,500/MT (USD 240) for H2 delivery to Utsunomiya plant in Kanto region. For H2 delivered to Okayama plant, Kyushu works and Takamatsu steel centre, prices remain unchanged at JPY 23,500/MT (USD 222), JPY 24,500/MT (USD 231) and JPY 22,000/MT (USD 207) respectively.
Prior to this, the company had observed price cuts at 3 of its works last week, Okayama Plant, Takamatsu steel centre and Utsunomiya plant, by JPT 500/MT each. This is the 4th successive price lowering in scrap purchase bids by the company, since their last price hike which was reported in end-July 19.
With the current domestic scrap prices already below 2 year low levels, the continued low finished steel sales domestically as well as a reduction in bids of scrap from overseas buyers, are creating further pressure on Japanese scrap market, while recent currency appreciation also pulled the prices down.
Tokyo steel’s scrap purchase price effective from 4th Sep’19 – –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class (H2) | 25,000 | 23,500 | 24,500 | 25,500 | 22,000 |
| First Grade | 24,500 | 23,000 | 24,000 | 25,500 | 21,500 |
| Second Grade | 23,000 | 21,500 | 22,500 | 24,000 | 20,000 |
| New Breaking Press A | 26,500 | 25,500 | 26,500 | 27,500 | 24,000 |
| Shredder A | 26,500 | 24,000 | 25,000 | 26,000 | 22,500 |
| Shredder C | 26,000 | 23,500 | 24,500 | 25,500 | 22,000 |
Prices in JPY/MT,
Source: Tokyo Steel Reports
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