Tokyo Steel has raised the purchase prices for all grades of scrap by JPY 1000/MT (USD 9) at Utsunomiya plant and by JPY 500/MT (USD 5) at Tahara plant respectively, Domestic scrap prices have turned strong in Japan and South Korea.
Japan’s leading EAF steel mini-mill – Tokyo Steel has revised its domestic scrap purchase prices third time in a week’s time. As per new price circular, the steel manufacturer has raised prices at Utsunomiya work by JPY 1000/MT (USD 9) which is based in the Kanto region in north Japan and by JPY 500/MT at its largest work in Central Japan-Tahara. Revised prices for all grades of scrap shall be effective from tomorrow i.e. 19th May’18.
Now H2 scrap fetches at JPY 35,500/MT (USD 314) for both Utsunomiya and 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. Price gap between Kanto region’s Utsunomiya plant and Western Okayama plant widened to JPY 4,000/MT (USD 36) for the same grade H2 in Japan.
Through three price hikes witnessed respectively w.e.f 12th, 16th and 19th May’18, Tokyo Steel scrap purchase prices have hiked by JPY 2500/MT (USD 23) at Utsunomiya plant while at Tahara by JPY 2000/MT for high-grade and by JPY 1000/MT for other grades of scrap respectively.
Tokyo Steel could have raised the prices further on depreciating the currency and strengthening scrap demand and rising local scrap prices by steelmakers in South Korea.
Now Japan’s H2 scrap export prices assessed in the range of 34,500-35,500/MT (USD 311-320) FoB for Kanto region while H2 prices stood at around JPY 34,000-35,000/MT (USD 306-315) for Gulf region in Japan.
Tokyo Steel’s scrap purchase prices effective from 19 May’18 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 35,500 | 31,500 | 32,000 | 35,500 | 31,000 |
| First Grade | 35,000 | 31,000 | 31,500 | 35,500 | 30,500 |
| Second Grade | 33,500 | 29,500 | 30,000 | 34,000 | 29,000 |
| New Cutting Press A | 40,500 | 33,500 | 34,000 | 37,500 | 33,000 |
| Shredder A | 36,000 | 32,000 | 32,500 | 36,000 | 31,500 |
| Shredder C | 35,500 | 31,500 | 32,000 | 35,500 | 31,000 |
Prices in Japanese Yen/MT for transport on land
Source: Tokyo Steel Reports
Japanese Yen drops 4% in a month’s time against USD – Today USD/JPY rate stood at 111 which was trading at around 109.2 a week ago. Moreover, JPY remained depreciating continuously for the last one months’ time by almost 3.55% against USD. Which was trading at around 107.2 a month ago. Depreciation yen has also influenced scrap prices to increase in Japan.
Japan’s domestic scrap prices in Kanto region increase further – The region wise price indices announced by Japan steel association showed mix trends for this week. H2 price index for Kanto region stood at JPY 32,800/MT (up JPY 300 W-o-W), for Central government region it stood at JPY 32,800/MT and at JPY 31,100/MT for Central region respectively. The average index remained stable at 32,200/MT W-o-W.
Average scrap purchase prices for leading EAF steelmakers based in Tokyo, Osaka and Nagoya regions in Japan yesterday assessed at around JPY 33,800/MT for H2 and at around JPY 38,000/MT for New cutting press respectively.
South Korean domestic scrap purchase prices increase by USD 9-18/MT – Leading steelmakers like Hyundai, Daehan, YK, Posco and SeAH Steel have raised domestic scrap prices by KRW 10,000-20,000/MT (USD 9-18) on increasing purchases. Thus improving demand and widening price gap between local and imported may result in the hike in import bids for Japanese scrap in coming days. However, increasing scrap prices but still sluggish demand for rebar is the matter of concern now for most of the South Korean steelmakers.
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