Amid sharp fall in global scrap prices and recent fall in bids placed by South Korean steel mills for Japanese scrap, Tokyo steel has cut scrap purchase prices by JPY 500/MT at all its different works with effect from tomorrow (i.e. 02 Feb’18).
Japan’s leading EAF steel producer – Tokyo Steel has cut its domestic scrap purchase prices after raising prices twice in last month. As per latest price circular, scrap buying prices have moved down further by JPY 500/MT (USD 5) at all five works which would be effective from tomorrow (i.e. 02nd Feb’18) for all grades of scrap in Japan.
Now H2 scrap fetches JPY 38,000/MT (USD 346) at largest work in central Japan-Tahara. While the same grade fetches JPY 37,000/MT (USD 337) at Utsunomiya works in north Japan, H2 bids are placed at JPY 36,000/MT(USD 328) for Okayama and Kyushu works in west Japan while for its Takamatsu Steel Center company keeps bids at JPY 35,500/MT (USD 323).
South Korea’s leading electric arc furnace steelmaker – Hyundai Steel has reduced its import prices for Japanese H2 ferrous scrap by Japanese Yen 1000/MT (USD 9). Its latest bid put for H2 grade scrap on 30 Jan’18 was at JPY 35,500/MT (USD 327), FoB Japan against its last bid reported on 23rd Jan’18 which was at JPY 36,500/MT (USD 336) FoB Japan.
Japanese scrap sellers from Kanto region recently reduced scrap export prices further and market participants are expecting Japanese scrap prices might have reached its peak and are likely to come down further as the recent prices for H2 scrap were yesterday assessed at JPY 36800/MT, FoB Japan.
Tokyo Steel’s scrap purchase prices with effective from 02 Feb’18 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 38,000 | 36,000 | 36,000 | 37,000 | 35,500 |
| First Grade | 37,500 | 35,500 | 35,500 | 37,000 | 35,000 |
| Second Grade | 36,000 | 34,000 | 34,000 | 35,500 | 33,500 |
| New Cutting Press A | 41,500 | 38,000 | 38,000 | 38,500 | 37,500 |
| Shredder A | 38,500 | 36,500 | 36,500 | 37,500 | 36,000 |
| Shredder C | 38,000 | 36,000 | 36,000 | 37,000 | 35,500 |
Prices in Japanese Yen/MT for transport on land (Exchange Rate USD 1 = JPY 109.7)
Source: Tokyo Steel Reports
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