Japan’s Tokyo Steel has observed its fourth successive price hike for a domestic scrap purchase price in just ten days and the new prices will be effective from tomorrow, 2nd June’20. Notably, the company has increased its bids for domestic scrap price by JPY 1000/MT delivered to the Tahara plant and Kyushu factory, while JPY 500/MT for the other remaining three plants.
After the latest price hike, the company will now pay JPY 22,500 /MT (USD 209) for H2 scrap delivered at its Tahara plant in Central Japan. The same level of the purchase price in Tahara plant was observed in earlier Feb’20 as per price maintained with SteelMint. The prices to Tahara Plant have now climbed up by JPY 4,000/MT (22% increase) in just around 10 days, on higher demand in the Central region.
Meanwhile, the new prices for H2 scrap delivery to the Utsunomiya plant in the Kanto region and Okayama plant now stand at JPY 21,000/MT (USD 195) and JPY 20,000/MT (USD 186) respectively. Prices for Kyushu works and Takamatsu steel Centre have now risen to JPY 20,500/MT (USD 191) and 19,000/MT (USD 177) respectively.
With Japanese export offers already up by 27% since bottoming a month ago, and a further rise expected due to limited scrap availability and tight supply amid already rising demand, domestic scrap prices can also be expected to witness a continued uptrend for the short term, while the market keeps an eye on the domestic steel demand.
Tokyo Steel’s Bids For Scrap Purchase from 2nd June’2020
| Name of Work of Tokyo Steel | |||||
| Scrap Grade | Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center |
| Special Class (H2) | 22,500 | 20,000 | 20,500 | 21,000 | 19,000 |
| First Grade | 22,000 | 19,500 | 20,000 | 21,000 | 18,500 |
| Second Grade | 20,500 | 18,000 | 18,500 | 19,500 | 17,000 |
| New Breaking Press A | 24,500 | 21,000 | 22,000 | 23,000 | 20,000 |
| Shredder A | 24,000 | 20,500 | 21,000 | 21,500 | 19,500 |
| Shredder C | 23,500 | 20,000 | 20,500 | 21,000 | 19,000 |
Price in JPY
Source: Tokyo Steel Reports
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