Tokyo Steel has today announced another price hike for the purchase of domestic scrap at Utsunomiya work in Kanto region. Prices remain unchanged at its other four works.
Japan’s leading EAF steel mini-mill – Tokyo Steel has revised its domestic scrap purchase prices again after witnessing five price hikes in May’18. As per new price circular released, the steel manufacturer has raised prices at Utsunomiya work by JPY 500/MT (USD 5) which is located in the Kanto region in north Japan. Revised prices for all grades of scrap shall be effective from tomorrow i.e. 07th Jun’18.
Now H2 scrap fetches at JPY 37,000/MT (USD 336) for Utsunomiya and JPY 35,500/MT at Tahara works. While prices for all grades of scrap remained same as the earlier for South-Western works like Okayama plant, Kyushu factory and Takamatsu Steel center in Japan. The price gap between Kanto region’s Utsunomiya plant and Western Okayama plant widened to JPY 5500/MT (USD 50) for the same grade H2 in Japan.
Japan’s H2 scrap export offers from suppliers assessed in the range of 35,500-36,500/MT (USD 322-331) FoB for Kanto region while H2 prices stood at around JPY 35,000-36,000/MT (USD 318-327) for Gulf region in Japan.
Tokyo Steel’s scrap purchase prices effective from 07th Jun’18 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 35,500 | 31,500 | 32,000 | 37,000 | 31,000 |
| First Grade | 35,000 | 31,000 | 31,500 | 37,000 | 30,500 |
| Second Grade | 33,500 | 29,500 | 30,000 | 35,500 | 29,000 |
| New Cutting Press A | 40,500 | 33,500 | 34,000 | 39,000 | 33,000 |
| Shredder A | 36,000 | 32,000 | 32,500 | 37,500 | 31,500 |
| Shredder C | 35,500 | 31,500 | 32,000 | 37,000 | 31,000 |
Prices in Japanese Yen/MT for transport on land
Source: Tokyo Steel Reports
Hyundai Steel resumed bids for Japanese scrap last week – South Korean steel mills resumed scrap purchases from Japan last week. Hyundai Steel’s bid for Japanese H2 remained at JPY 34,000/MT (USD 309), FoB Japan. Though this bidding the steelmaker imported 70,000 MT scrap last week. According to scrap inventories maintained steel daily, Hyundai steel is having 500,000 MT scrap available in hand which down 8.5% against last weeks’ inventory, however, inventories with other six leading steelmakers (Dongkuk, Posco, YK, Korea Iron & Steel, Welcome, Korea Steel) rose 14.5% this week from previous week.
South Korean domestic scrap prices down amid falling demand – South Korean domestic scrap prices have turned downward after Hyundai slashed prices by KRW 25,000/MT (USD 23) over the rebar production cuts to KRW 399,000/MT (USD 374) including taxes. Aggressive rebar production cuts to maintain deficit and supply-demand gap have resulted in the sharp fall in scrap purchases in South Korea both in Domestic and import markets.
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