Japan’s leading EAF mini-mill – Tokyo Steel has further lowered its domestic scrap purchase price at all five of its works. While, the price has been cut by JPY 1000/t ($ 9) to its Tahara and Utsunomiya plant and by JPY 500/t ($ 5) to the other three plants, as per the new price circular released, the new prices will be effective from tomorrow 2nd July’20.
With this price cut, the company will now pay JPY 23,500 /t ($ 219) and JPY 23,000/t ($ 214) for H2 scrap delivered to its Tahara plant in Central Japan, and its Utsunomiya plant in the Kanto region respectively.
While the prices for H2 scrap delivered to the other plants are now set at JPY 24,000/t ($ 223) for Okayama plant, JPY 24,500/t ($ 228) for Kyushu factory and JPY 23,000/t ($ 214) for Takamatsu steel center.
Interestingly, for the first time since Oct’18, scrap purchase price for Okayama plant has now fixed at a higher level than the price set for Tahara and Utsunomiya plant.
While, Utsunomiya plant which is in Kanto region, a predominantly scrap export-based region in comparison to other 4 regions which are more into domestic sales, has seen the steepest fall in prices in the last 2 weeks (dropping by JPY 3500/t in total) following the sudden crash in Japanese export offers of scrap, with Utsunomiya prices now falling to levels similar to Takamatsu steel center.
Tokyo Steel’s bids for scrap purchase from 2nd July’2020
| Name of Work of Tokyo Steel | |||||
| Scrap Grade | Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center |
| Special Class (H2) | 23,500 | 24,000 | 24,500 | 23,000 | 23,000 |
| First Grade | 23,000 | 23,500 | 24,000 | 23,000 | 22,500 |
| Second Grade | 21,500 | 22,000 | 22,500 | 21,500 | 21,000 |
| New Breaking Press A | 26,500 | 25,000 | 26,000 | 25,000 | 24,000 |
| Shredder A | 25,000 | 24,500 | 25,000 | 23,500 | 23,500 |
| Shredder C | 24,500 | 24,000 | 24,500 | 23,000 | 23,000 |
Price in JPY
Source: Tokyo Steel Reports
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