Japan’s leading EAF steel mini-mill – Tokyo Steel has announced hike in its scrap purchase prices for its western plants after almost six months’ period. As per new price circular released, the steel manufacturer has raised prices by JPY 1000/MT (USD 9) at Okayama and Takamastsu steel center and by JPY 500/MT (USD 5) at Kyushu plant in Japan. While prices remain changed at major plants like Tahara and Utsunomiya for all grades of scrap. Revised prices shall be effective from tomorrow i.e. 14th Jul’18.
Tokyo steel fetches H2 scrap at JPY 35,500/MT (USD 315) for its Kanto region based works i.e. Utsunomiya and at JPY 35,000/MT for largest works in central Japan-Tahara. After this price hike, bids for the same grade has increased to JPY 32,500/MT levels at Okayama and Kyushu plants in Western Japan while for its Takamatsu Steel Center company keeps bid at JPY 32,000/MT located in southern Japan.
Tokyo Steel has revised prices at Western plants almost after three months (13 weeks) which is an indicative for strengthening of domestic prices throughout the country narrowing the H2 price gap between Okayama plant and Utsunomiya plant to JPY 3,000/MT (USD 27) now.
USD/JPY exhange rate increased to 112.6 today as against 110.3 observing another 2% depreciation of JPY in a weeks’ time against USD.
Tokyo Steel’s scrap purchase prices effective from 14th Jul’18 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 35,000 | 32,500 | 32,500 | 35,500 | 32,000 |
| First Grade | 34,500 | 32,000 | 32,000 | 35,500 | 31,500 |
| Second Grade | 33,000 | 30,500 | 30,500 | 34,000 | 30,000 |
| New Cutting Press A | 40,000 | 34,500 | 34,500 | 38,500 | 34,000 |
| Shredder A | 35,500 | 33,000 | 33,000 | 36,000 | 32,500 |
| Shredder C | 35,000 | 32,500 | 32,500 | 35,500 | 32,000 |
Prices in Japanese Yen/MT for transport on land
Source: Tokyo Steel Reports
Japan’s domestic scrap prices remained weak for four successive weeks – According to price indices reported by Japan Iron and Steel Association, the average price index for H2 scrap stood at JPY 32,900/MT (USD 292) down by JPY 100/MT on W-o-W basis. While, prices in gulf region have turned upward now. Average H2 scrap export offers from suppliers assessed in the range of 34,500-35,000/MT (USD 307-311) FoB for Gulf region in Japan.
South Korean steelmakers cut domestic scrap purchase prices – Despite lowering of inventories with leading steelmakers, demand for finish steel has remained dull in South Korea. Following which leading steelmakers like Hyundai, Dongkuk, YK steel have reduced local scrap purchase prices by KRW 15,000-20,000/MT along with which the demand for Japanese scrap has remained low.
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