Japan’s Tokyo Steel has now observed its 6th consecutive price hike for a domestic scrap purchase price since 22nd May onward, with the domestic Japanese domestic prices having now climbed by at least JPY 4,500-5,000/MT over this period of just 2 weeks in a strong rebound to a 5 month high levels. The new prices will be effective from tomorrow, 6th June’20.
The company has continued to increase its bids for domestic scrap price by JPY 1000/MT delivered to the Kyushu factory and Utsunomiya plant, while for other remaining three plants prices up by JPY 500/MT.
Prices for Kyushu works and the Utsunomiya plant in the Kanto region now risen to JPY 22,500/MT (USD 206) and JPY 23,000/MT (USD 211) respectively.
Meanwhile, the company will now pay JPY 23,500/MT (USD 215) for H2 scrap delivered at its Tahara plant in Central Japan. While the new prices for H2 scrap delivery to Okayama plant and Takamatsu steel Centre have now set at JPY 21,000/MT (USD 192) and JPY 20,000/MT (USD 183) respectively.
Tokyo Steel’s Bids For Scrap Purchase from 6th June’2020
| Name of Work of Tokyo Steel | |||||
| Scrap Grade | Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center |
| Special Class (H2) | 23,500 | 21,000 | 22,500 | 23,000 | 20,000 |
| First Grade | 23,000 | 20,500 | 22,000 | 23,000 | 19,500 |
| Second Grade | 21,500 | 19,000 | 20,500 | 21,500 | 18,000 |
| New Breaking Press A | 25,500 | 22,000 | 24,000 | 25,000 | 21,000 |
| Shredder A | 25,000 | 21,500 | 23,000 | 23,500 | 20,500 |
| Shredder C | 24,500 | 21,000 | 22,500 | 23,000 | 20,000 |
Price in JPY
Source: Tokyo Steel Reports
Japanese export offers continue to rise, South Korean Dongkuk Steel concludes a booking:
Earlier this week, South Korean Dongkuk steel has booked a bulk cargo with Japanese H2 scrap at an average price of JPY 27,000/MT, CFR basis (Around JPY 24,500/FoB), which equals around USD 248/MT CFR, while most fresh offers for Japanese H2 scrap in bulk are now around JPY 25,000-25,500/MT FoB Japan, to Korean mills, who are trying to resist the high offers and bidding at around JPY 24,500/MT at most.
Higher Japanese offers turn Korean buyers towards Russian scrap, booking reported:
Due to increased imported offers to South Korea for Japanese H2 scrap, Korean mills are now even more actively looking towards Russian scrap. Two major steelmakers namely Korea Steel and YK steel have booked a cargo each, for Russian A3 grade at USD 250/MT and USD 251/MT CFR South Korea, respectively.
Leave a Reply