As per new price circular released, Japan’s leading EAF steel mini-mill – Tokyo Steel has lowered the domestic scrap purchase price by JPY 500/MT (USD 5) at all five works in Japan. New prices for all grades have come into effect from today (24th Apr’19). Ahead of the Golden Week Holidays in Japan, this is the 8th consecutive price cut by Tokyo Steel in April ‘19.
After this price cut, H2 scrap prices in Utsunomiya works in Kanto has fallen below Yen 30,000/MT mark and is close to levels seen 1 year 8 months ago.
With a recent price cut, the company will pay JPY 31,000/MT (USD 277) for H2 Scrap delivered at Tahara in central Japan and Kyushu works in the Western region. While JPY 29,500/MT (USD 264) for H2 delivered to Utsunomiya plant in the Kanto region, JPY 30,000/MT (USD 268) for Okayama plant and JPY 28,500/MT (USD 255) at Takamatsu steel Utsunomiya Factory center.
The steelmaker has further lowered price for high-grade scrap ‘New breaking press A’ delivered at Tahara Plant by JPY 1000/MT to JPY 34,500/MT from 35,500 earlier, further reducing the gap between high grade and low-grade scrap (H2) amid Low demand for high-grade scrap in the market.
Few market participants are worried about the fact that scrap prices may rise after Golden Week holidays, however it will be interesting to see the same.
Tokyo Steel’s scrap purchase price effective from 24th April ’19 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu | Utsunomiya Factory | Takamatsu Steel Center | |
| Factory | |||||
| Special Class (H2) | 31,000 | 30,000 | 31,000 | 29,500 | 28,500 |
| First Grade | 30,500 | 29,500 | 30,500 | 29,500 | 28,000 |
| Second Grade | 29,000 | 28,000 | 29,000 | 28,000 | 26,500 |
| New Breaking Press A | 34,500 | 32,000 | 33,000 | 31,500 | 30,500 |
| Shredder A | 32,500 | 30,500 | 31,000 | 30,000 | 29,000 |
| Shredder C | 32,000 | 30,000 | 31,000 | 29,500 | 28,500 |
Prices in JPY/MT
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