Amid rising restocking scrap activities, falling inventories and tightening supply, Tokyo Steel has raised scrap prices further by JPY 500/MT at Utsunomiya plant in Kanto region Japan witnessing third price hike in last seven days.
Japan’s leading EAF steel mini-mill – Tokyo Steel has announced fifth hike in its scrap purchase prices in August month. As per new price circular released, the steel manufacturer has raised prices by JPY 500/MT (USD 5) at its Utsunomiya plant against last set of prices in Kanto region in Japan. However, prices remain unchanged at other four plants and revised prices shall be effective from tomorrow i.e. 24th Aug’18.
Tokyo Steel fetches H2 scrap at JPY 38,000/MT (USD 345) for its Kanto region based works i.e. Utsunomiya and at JPY 36,500/MT for largest works in central Japan-Tahara. Bids for the same grade remained at JPY 36,000/MT levels at Kyushu plant and JPY 35,500/MT at Okayama works in Western Japan while for its Takamatsu steel center company kept bids at JPY 35,000/MT in Southern Japan.
Notably, prices at Utsunomiya plant have crossed JPY 37,500/MT mark the first time in more than last one years’ time. Earlier to this, on 20th Mar’18 and 17th Jan’18, prices had climbed at JPY 37,500/MT as the temporary peak at Utsunomiya works.
After witnessing Obon holidays EAF steelmakers have resumed activities with increasing demand for restocking of scrap amid increasing operating hours on low electricity charges. H2 price gap between Okayama and Utsunomiya plant has widened at JPY 2,500/MT while it has widened to JPY 1,500/MT in between prices at Tahara and Utsunomiya works.
The steelmaker has kept finish steel prices unchanged for seventh consecutive month for September deliveries.
Tokyo Steel’s scrap purchase prices effective from 24th Aug’18 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 36,500 | 35,500 | 36,000 | 38,000 | 35,000 |
| First Grade | 36,000 | 35,000 | 35,500 | 38,000 | 34,500 |
| Second Grade | 34,500 | 33,500 | 34,000 | 36,500 | 33,000 |
| New Cutting Press A | 41,500 | 37,500 | 38,000 | 41,500 | 37,000 |
| Shredder A | 37,000 | 36,000 | 36,500 | 38,500 | 35,500 |
| Shredder C | 36,500 | 35,500 | 36,000 | 38,000 | 35,000 |
Prices in Japanese Yen/MT for transport on land
Source: Tokyo Steel Reports
Domestic scrap price indices rise sharply in Japan – According to price indices reported by Japan Iron and Steel Association, the average price index for H2 scrap stood at JPY 37,000/MT (USD 334) up by JPY 600/MT on W-o-W basis. For Kanto region, H2 assessed at JPY 35,200/MT (up JPY 1000/MT W-o-W), for central region at JPY 32,300/MT (up JPY 500/MT W-o-W) and for Kansai region at JPY 33,600/MT (up JPY 200/MT W-o-W) respectively.
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