As per new price circular released, Japan’s leading EAF steel mini-mill – Tokyo Steel has raised domestic scrap purchase price by JPY 500/MT (USD 4.5) at two of its facilities (Okayama plant and Takamatsu steel center) for all grades effective from tomorrow (20th Mar’19), on the other hand, prices at Utsunomiya, Tahara and Kyushu works remained unchanged.
With a recent price hike, the company will pay JPY 33,500/MT (USD 301) at Okayama plant and JPY 31,500/MT at Takamatsu steel center. While JPY 35,000/MT (USD 315) for H2 delivered to Utsunomiya plant in the Kanto region, Tahara in the central area and Kyushu in western Japan.
Further scrap price hike remains skeptical – Scrap prices in Feb’19 skyrocketed to international price levels but uptrend has slowed down now. Although so far the steelmaker witnessed 5 price hikes in Mar’19 for scrap purchase amid tight supply and demand, it is anticipated that no price revision for H2 delivered to Utsunomiya plant in the Kanto region since more than two weeks’ period indicate sharp price hike is not expected further in the short term in Japan.
Reports suggest that upcoming Golden Week holidays during 29th April-6th May in Japan is still the variable which can keep prices high amid tight supply for the next 10 days, however, prices may be adjusted after holidays. Few reports believe that scrap prices in Japan might have reached a short term peak now and there are less chances of further increase.
Tokyo Steel’s scrap purchase price effective from 20th Mar’19 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class (H2) | 35,000 | 33,500 | 35,000 | 35,000 | 31,500 |
| First Grade | 34,500 | 33,000 | 34,500 | 35,000 | 31,000 |
| Second Grade | 33,000 | 31,500 | 33,000 | 33,500 | 29,500 |
| New Cutting Press A | 40,000 | 35,500 | 37,000 | 38,500 | 33,500 |
| Shredder A | 36,500 | 34,000 | 35,500 | 35,500 | 32,000 |
| Shredder C | 36,000 | 33,500 | 35,000 | 35,000 | 31,500 |
Prices in Japanese Yen/MT for transport on land,
Source: Tokyo Steel Reports
Tokyo Steel kept steel prices unchanged for April – Notably, the steelmaker has kept its steel prices steady for the 4th consecutive month amid lackluster demand in the domestic market. Thus rebar prices continued to remain stable at JPY 69,000/MT and H beam prices at JPY 89,000/MT for April deliveries.
~Inputs from Steel Daily
Leave a Reply