Following higher bids fetched in Japan’s monthly scrap export tender ‘Kanto Tetsugen’ for May’18, Tokyo steel has raised the domestic scrap purchase prices by JPY 500/MT (USD 5) at two of its major works, Tahara and Utsunomiya in Japan.
Japan’s leading EAF steel mini-mill – Tokyo Steel has revised its domestic scrap purchase prices after keeping them unchanged for almost a month’s time. As per new price circular, the steel manufacturer has raised the prices by JPY 500/MT (USD 4.57) at two major works i.e. Tahara and Utsunomiya. The revised prices shall be effective from tomorrow i.e. 12th May’18.
Now H2 scrap fetches JPY 35,000/MT (USD 320) at largest work in central Japan-Tahara. While the same grade fetches JPY 33,500/MT (USD 306) at Utsunomiya work which is based in the Kanto region in north Japan. While for its Okayama plant, Kyushu factory and Takamatsu Steel center, Tokyo has kept prices unchanged at JPY 31,500/MT, JPY 32,000/MT and JPY 31,000/MT respectively.
Tokyo steel kept prices unchanged during the last four weeks’ time after monthly scrap tender prices hit five month’s low in Japan as the domestic scrap prices remained almost stable. The slowdown in the purchase activities amid Golden week holidays spanning between 29th Apr-06th May, weakening Yen against USD and sharply plunged demand from South Korean steel mills, kept Japanese scrap prices bounded during last one month’s time.
Notably, Tokyo steel has witnessed its first price hike at its largest work Tahara after almost nine weeks’ time. Earlier to this, prices at Tahara work had increased in the second week of Mar’18 since then which remained either on downtrend or stable in Japan.
Tokyo Steel’s scrap purchase prices with effective from 12 May’18 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 35,000 | 31,500 | 32,000 | 33,500 | 31,000 |
| First Grade | 34,500 | 31,000 | 31,500 | 33,500 | 30,500 |
| Second Grade | 33,000 | 29,500 | 30,000 | 32,000 | 29,000 |
| New Cutting Press A | 39,000 | 33,500 | 34,000 | 35,500 | 33,000 |
| Shredder A | 35,500 | 32,000 | 32,500 | 34,000 | 31,500 |
| Shredder C | 35,000 | 31,500 | 32,000 | 33,500 | 31,000 |
Prices in Japanese Yen/MT for transport on land
Source: Tokyo Steel Reports
Average bids in ‘Kanto Tetsugen’ tender increased by USD 12/MT in May’18 –
Kanto Tetsugen, Japan’s monthly ferrous scrap export tender concluded on 10th May in Kanto region for this month. The average bids for May’18 recorded at JPY 34,245/MT (USD 313), FAS which have increased by JPY 1,266/MT (USD 12) on M-o-M basis as against the average bids at JPY 32,979/MT in Apr’18.
Tokyo steel could have revised its prices as the market direction is quite clear after Kanto’s result in Japan.
Bids recorded in Kanto Tetsugen for May’18 were higher by around JPY 1500/MT (USD 14) than the market price levels in the Kanto region. Following which Japanese domestic scrap prices strengthened further. This has pulled Japan’s domestic H2 scrap price assessment up, in the range of 33,500-34,500/MT (USD 306-316) FoB for Kanto region while H2 prices stood in the range of JPY 33,000-33,500/MT (USD 302-307) for Gulf region in Japan.
Average scrap purchase prices for leading EAF steelmakers based in Tokyo, Osaka and Nagoya regions in Japan yesterday assessed at JPY 33,200/MT for H2 and at around JPY 37,000/MT for New cutting press respectively.
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