Sharp decline Japan’s domestic scrap prices in all major regions along with reduced bids for imported scrap from South Korean steel mills has resulted in the third price cut of Tokyo steel mill in last six days.
Japan’s leading EAF steel producer – Tokyo Steel has slashed its domestic scrap purchase prices by Japanese Yen 500-1000/MT (USD 5-9). The steel manufacturer has lowered purchase price for domestic scrap by JPY 1000/MT (USD 9) at its Utsunomiya factory. While for its other plants in Tahara, Okayama, Kyushu and Takamatsu Steel Centre bids have come down by JPY 500/MT (USD 5). The revised prices shall be effective from tomorrow i.e. 6 Apr’18.
Now H2 scrap fetches JPY 35,500/MT (USD 332) at largest work in central Japan-Tahara. While the same grade fetches JPY 34,500/MT (USD 322) at Utsunomiya works in north Japan. While for its Okayama plant, Kyushu factory Takamatsu Steel Center Company bids are at JPY 33,000/MT at JPY 33,500/MT and JPY 32,500/MT respectively.
Tokyo Steel mill observed three price cuts successively on 31st March, 04th and 6th of April respectively in last six days. Thus H2 scrap prices have dropped by JPY 2500/MT(USD 23) for its Tahara plant, by JPY 3000/MT(USD 28) at Utsunomiya plant while other three plants of Tokyo steel have witnessed price cut of total JPY 2000/MT(USD 19) in a week’s time respectively.
Thus price gap between Utsunomiya plant which comes in Kanto region and Okayama plant which comes in Kansai region has reduced by JPY 500/MT to JPY 1500/MT in Japan.
After the recent price cut, H2 scrap prices in Tahara plant have dropped to nearly 5 months low as the price of JPY 35,500/MT was last seen on 22 Nov’17.
Global scrap prices have come down sharply in recent deals concluded. Turkey imported scrap prices decreased by further USD 10-12/MT. While higher scrap inventories with leading South Korean EAF steel manufacturers have put bids for scrap under pressure.
Tokyo Steel’s scrap purchase prices with effective from 06 Apr’18 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 35,500 | 33,000 | 33,500 | 34,500 | 32,500 |
| First Grade | 35,000 | 32,500 | 33,000 | 34,500 | 32,000 |
| Second Grade | 33,500 | 31,000 | 31,500 | 33,000 | 30,500 |
| New Cutting Press A | 39,500 | 35,000 | 35,500 | 36,500 | 34,500 |
| Shredder A | 36,000 | 33,500 | 34,000 | 35,000 | 33,000 |
| Shredder C | 35,500 | 33,000 | 33,500 | 34,500 | 32,500 |
Prices in Japanese Yen/MT for transport on land
Source: Tokyo Steel Reports
Japan’s domestic scrap prices plunge – According to Japan Iron and Steel Association, domestic scrap prices plummeted for the first week of April in Japan. The average price index for H2 scrap decreased to around JPY 34,400/MT (USD 321) down by JPY 1000/MT on W-o-W basis. For Kanto region, H2 scrap price index assessed at JPY 35,300/MT (- JPY 1500/MT W-o-W) and for Central and Kansai regions price indices moved down by JPY 800/MT at JPY 33,500/MT and JPY 34,100/MT respectively.
Average EAF steelmaker’s scrap purchase prices from Tokyo, Osaka and Nagoya regions assessed at JPY 34,900/MT for H2 and at around JPY 38,600/MT for New cutting press respectively.
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