Japan’s leading EAF steel mini-mill – Tokyo Steel has announced a third successive price cut for domestic scrap purchase in last one weeks’ time. As per new price circular released, the steel manufacturer has cut prices by JPY 500/MT (USD 5) for low and medium grades of scrap at Utsunomiya work while for all grades of scrap at Tahara plant. Revised prices shall be effective from tomorrow i.e. 22nd Jun’18.
As per updates, Tokyo has kept prices for high-grade scrap like Shin Dachibara and Shin Dachi Presses unchanged at Utsunomiya plant which is located in Kanto region in north Japan. Also, it has witnessed first price cut in last two months’ time at Tahara works in central Japan today.
Now H2 scrap fetches at JPY 35,500/MT (USD 322) for Utsunomiya and JPY 35,000/MT at Tahara works. While prices for all grades of scrap remained same as the earlier for South-Western works like Okayama plant, Kyushu factory and Takamatsu Steel center in Japan.
Now average H2 scrap export offers from suppliers assessed in the range of 33,500-34,000/MT (USD 303-308) FoB for Kanto region in Japan. Over fallen import bids for Japanese scrap from South Korean steelmakers and declining export offers from Japanese suppliers, domestic scrap prices in Japan are weakening sharply.
Japan’s domestic scrap price index falls in two months – According to price indices reported by Japan Iron and Steel Association, domestic scrap prices have turned downward for this week in Japan. The average price index for H2 scrap stood at JPY 33,300/MT (USD 302) down by JPY 300/MT on W-o-W basis. For Kanto region, H2 assessed at JPY 34,400/MT (down JPY 800/MT W-o-W) and for central region price index assessed at JPY 33,400/MT respectively.
Tokyo Steel’s scrap purchase prices effective from 22th Jun’18 –
| Scrap Grade | Name of Works of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 35,000 | 31,500 | 32,000 | 35,500 | 31,000 |
| First Grade | 34,500 | 31,000 | 31,500 | 35,500 | 30,500 |
| Second Grade | 33,000 | 29,500 | 30,000 | 34,000 | 29,000 |
| New Cutting Press A | 40,000 | 33,500 | 34,000 | 38,500 | 33,000 |
| Shredder A | 35,500 | 32,000 | 32,500 | 36,000 | 31,500 |
| Shredder C | 35,000 | 31,500 | 32,000 | 35,500 | 31,000 |
Prices in Japanese Yen/MT for transport on land
Source: Tokyo Steel Reports
South Korean steelmakers’ scrap inventories rising sharply – Hyundai Steel’s last bids for Japanese H2 at JPY 33,500/MT (USD 303), FoB Japan received a decent response. Amid considerable scrap inventories in hand, leading steelmakers have continued price cuts for domestic scrap in South Korea.
Three bulk scrap vessels reported from USA to South Korea – As per Steeldaily’s report, two bulk vessels booked by Dongkuk Steel in May month from USA are expected to arrive shortly. A vessel carrying 33,000 MT is expected to berth in late June while another 50,000 MT bulk vessel expected to berth in early July at Incheon steelworks. While Hyundai Steel has booked a large vessel for August shipment. With the arrival of these vessels, scrap inventories with steelmakers are likely to increase sharply impacting the demand for Japanese scrap further.
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