As per new price circular released, Japan’s leading EAF steel mini-mill – Tokyo Steel has lowered domestic scrap purchase price by another JPY 1000/MT (USD 9) at Utsunomiya works while prices at remaining four works have been lowered by JPY 500/MT (USD 4.5) in Japan. New prices for all grades shall be effective from tomorrow (05th Apr’19).
With a recent price cut, the company will pay JPY 32,500/MT (USD 292) for H2 delivered to Utsunomiya plant in the Kanto region while JPY 34,500/MT (USD 310) at Tahara in central Japan and Kyushu works in Western Japan. New prices stand at JPY 33,000/MT for Okayama and JPY 31,500/MT at Takamatsu steel center.
Following Tokyo’s lead, many EAF steelmakers in Japan have lowered scrap prices by JPY 500-1000/MT and H2 collection prices at gulf region assessed at JPY 32,500-33,000/MT, FoB Japan.
Notably, this is the second successive price cut Tokyo has observed in last 3 days. Prior to this, on 03rd Mar’19, Tokyo Steel had lowered scrap price at Utsunomiya by JPY 1,000/MT maintaining prices at other works unchanged. Since last two weeks, prices at Utsunomiya have been lowered by a total JPY 2,500/MT in 3 successive price cuts made.
Japanese Yen has continued depreciation against USD in the last seven days. USD/JPY rate stands at 111.4 level today against 110.2 a week ago.
Tokyo Steel’s scrap purchase price effective from 05th Apr’19 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class (H2) | 34,500 | 33,000 | 34,500 | 32,500 | 31,500 |
| First Grade | 34,000 | 32,500 | 34,000 | 32,500 | 31,000 |
| Second Grade | 32,500 | 31,000 | 32,500 | 31,000 | 29,500 |
| New Cutting Press A | 39,500 | 35,000 | 36,500 | 36,000 | 33,500 |
| Shredder A | 36,000 | 33,500 | 35,000 | 33,000 | 32,000 |
| Shredder C | 35,500 | 33,000 | 34,500 | 32,500 | 31,500 |
Prices in Japanese Yen/MT for transport on land,
Source: Tokyo Steel Reports
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