Following a jump in bids for Kanto monthly scrap tender, steelmaker has raised prices today by Yen 500/MT (USD 5).
As per new price circular released, Japan’s leading EAF steel mini-mill – Tokyo Steel has raised domestic scrap purchase price by JPY 500/MT (USD 5) at all five of its works. New prices shall be effective from tomorrow.
The steelmaker will pay JPY 31,500/MT (USD 285) for H2 scrap delivered to Utsunomiya plant situated in the Kanto region. While H2 price at the largest plant, Tahara stands at JPY 30,500/MT. Revised H2 price for Western Japan works is JPY 26,500/MT for Takamatsu steel center, JPY 28,000/MT at Okayama works and JPY 31,000/MT at Kyushu works respectively.
Tokyo Steel immediately reflected the sharp rise observed in Kanto association’s monthly scrap export tender concluded today for Feb’19 in Japan, which fetched average bid up by JPY 3,080/MT (USD 28/MT) on M-o-M basis. Total 20,000 MT scrap auctioned at an average of JPY 31,855/MT (USD 288), FAS in Feb’19, Following which Japanese domestic and export scrap prices are likely to climb sharply in the near terms.
Tokyo Steel’s H2 prices fell successively for 4 months’ time since Sept’18 to Jan’19. Prices at Utsunomiya works dropped by a total JPY 6,500/MT from a peak achieved at JPY 37,500/MT in Sept’18 to JPY 31,000/MT till 8th Jan’19.
Notably, the Japanese Yen depreciated around 2% against USD since the last price revision was done. USD/JPY stands at 110.6 today which was trading at around 108.6 levels on 8th Jan’19.
Tokyo Steel’s scrap purchase price effective from 14th Feb’18 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class (H2) | 30,500 | 28,000 | 31,000 | 31,500 | 26,500 |
| First Grade | 30,000 | 27,500 | 30,500 | 31,500 | 26,000 |
| Second Grade | 28,500 | 26,000 | 29,000 | 30,000 | 24,500 |
| New Cutting Press A | 35,500 | 30,000 | 33,000 | 35,000 | 28,500 |
| Shredder A | 32,000 | 28,500 | 31,500 | 32,000 | 27,000 |
| Shredder C | 31,500 | 28,000 | 31,000 | 31,500 | 26,500 |
Prices in Japanese Yen/MT for transport on land,
Source: Tokyo Steel Reports
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