Japan’s leading EAF mini mill- Tokyo Steel has announced its second price hike in its domestic scrap purchase prices after over a week. Bids have moved up by JPY 500/t ($ 5) for it Utsunomiya plant in Kanto region, effective from tomorrow, 28 July ’20. Notably, the company has kept its bid prices unchanged for another week for the other four works, as per the new circular released.
With this price hike, the company will pay JPY 22,500/t ($ 214) for H2 scrap delivered to Utsunomiya works in the Kanto region. Meanwhile, prices will remain unchanged for the other four works, and the company will continue to pay JPY 22,500/t, and JPY 23,000/t for H2 scrap delivered to Tahara plant and Okayama works respectively.
It was expected that Japan’s domestic scrap purchase price will increase in the coming days, as Japanese scrap export offers to other countries also increased last week.
Tokyo Steel’s bids for scrap purchase from 28th July’2020
Price in JPY
Source: Tokyo Steel report
POSCO raised bids for scrap purchase last week
By the closing of the last week, Korean manufacturing giant POSCO has presented its bids for Japanese scrap, putting H2 grade scrap offers at around JPY 24,000/t ($228) FoB Japan. Whereas, offers from Japanese suppliers were stands in the range of JPY 25,000/t ($238) FoB Japan basis, as per reports.
On the other hand, offers for Japanese H2 scrap to other South-East Asian countries like Vietnam have increased by around $5 against the last week and stand at around $268-270/t CFR basis.
JPY has appreciated against $ in last one week and is currently trading at 105.3 compared to 107 levels a week back.
“Apart from scrap export offers, global iron ore prices and the exchange rate will be the key factors that will govern Japanese domestic scrap purchase prices”, commented a trade source.
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