Strong finish steel demand and scrap exports turning more attractive amid JPY depreciation resulted in rising scrap purchase prices by the steelmaker.
Japan’s leading EAF steel mini-mill – Tokyo Steel has observed another hike in its scrap purchase prices. As per new price circular released, the steel manufacturer has raised prices by JPY 500/MT (USD 4) at Kyushu works, on the other hand, prices at other four of its plants in Japan (namely Tahara, Utsunomiya, Okayama, and Takamatsu Steel Centre) remained unchanged as against last set of prices. The revised prices are effective from 03rd Oct’18.
Tokyo Steel’s H2 scrap prices stand at JPY 39,000/MT (USD 341) for Western Japan plant, Kyushu. While prices at largest plant Tahara in central Japan and Takamatsu steel center in Southern Japan now stand at JPY 38,000/MT while bids for the same grade remained at JPY 37,500/MT for its Utsunomiya plant.
Japanese Yen (JPY) stands today at 114.5 as against USD which has depreciated by 2% as compared with 112.5 a week ago. Depreciated JPY may result in rising exports offers from country however, domestic demand remains good. Usually EAF steelmakers turn active to increase the production by intensive operation as autumn is high steel demand season.
Tokyo Steel’s scrap purchase prices effective from 03rd Oct’18 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 38,000 | 38,500 | 39,000 | 37,500 | 38,000 |
| First Grade | 37,500 | 38,000 | 38,500 | 37,500 | 37,500 |
| Second Grade | 36,000 | 36,500 | 37,000 | 36,000 | 36,000 |
| New Cutting Press A | 43,000 | 40,500 | 41,000 | 41,000 | 40,000 |
| Shredder A | 38,500 | 39,000 | 39,500 | 38,000 | 38,500 |
| Shredder C | 38,000 | 38,500 | 39,000 | 37,500 | 38,000 |
Prices in Japanese Yen/MT for transport on land;
Source: Tokyo Steel Reports
South Korea’s major steelmakers observe sharp rise in scrap inventories – According to reports, around 180,000 MT volumes of USA bulk scrap is expected to arrive at various plants of Hyundai Steel shortly. Around 48,000 MT USA bulk scrap cargo has arrived at Incheon mill on 1st Oct while another 2 bulk vessels of 45,000 MT and 48,000 MT scrap will arrive at Dangjin factory by 20th Oct. Dongkuk steel’s Incheon mill is also scheduled to receive 32,000 MT US scrap on 12th Oct. SeAH Besteel has already received its bulk vessel shipment from USA towards the end of Sept’18.
Sharp rise in scrap inventories which have recorded over 1 MnT for 7 leading steelmakers in South Korea is resulting in major price cut for domestic scrap in South Korea. Hyundai Steel heard to have cut domestic scrap prices by KRW 10,000/MT (USD 9) recently while it remains away from bidding for Japanese H2 since last more than 2 months.
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