As per new price circular released, Japan’s leading EAF steel mini-mill – Tokyo Steel has lowered domestic scrap purchase price by JPY 500/MT (USD 5) at all five works in Japan. New prices for all grades shall be effective from tomorrow (16th Apr’19).
With a recent price cut, the company will pay JPY 32,500/MT (USD 290) at Tahara in central Japan and Kyushu works in the Western region. While JPY 31,000/MT (USD 278) for H2 delivered to Utsunomiya plant in the Kanto region, JPY 31,500/MT for Okayama plant and JPY 30,000/MT at Takamatsu steel center.
Notably, H2 purchase price at Utsunomiya plant was last seen at JPY 31,000/MT on 8th Jan’19 thus, prices have hit 3 months low.
The steelmaker has lowered price for high-grade scrap ‘New cutting press A’ by JPY 1000/MT at Utsunomiya amid low demand for high-grade scrap in the market. Moreover, last week Hyundai Steel presented bids only for H2 by lowering prices further JPY 500/MT to JPY 32,500/MT, FoB.
Participants anticipate that Japanese scrap prices may continue downtrend as the supply-demand situation is not being considered as tight amid slow demand from overseas markets and upcoming Golden week holidays may keep production activities slow.
Tokyo Steel’s scrap purchase price effective from 16th Apr’19 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class (H2) | 32,500 | 31,500 | 32,500 | 31,000 | 30,000 |
| First Grade | 32,000 | 31,000 | 32,000 | 31,000 | 29,500 |
| Second Grade | 30,500 | 29,500 | 30,500 | 29,500 | 28,000 |
| New Cutting Press A | 37,000 | 33,500 | 34,500 | 33,500 | 32,000 |
| Shredder A | 34,000 | 32,000 | 33,000 | 31,500 | 30,500 |
| Shredder C | 33,500 | 31,500 | 32,500 | 31,000 | 30,000 |
Prices in Japanese Yen/MT for transport on land,
Source: Tokyo Steel Reports
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