Japan’s leading EAF mini mill- Tokyo Steel has announced its first price hike in scrap purchase prices by JPY 500/t ($ 5) for Utsunomiya plant in Kanto region and keeping bid prices unchanged for the other four regions, as per the new circular released, new prices will be effective from tomorrow, 17 July’20.
According to the new price hike, the company will pay JPY 22,000/t ($ 206) for H2 scrap delivered to Utsunomiya works in the Kanto region.
Meantime, prices will remain unchanged as the previous week for the other major works and the company will continue to pay JPY 22,500/t ($ 208) and JPY 23,000/t ($ 215) for H2 scrap delivered to Tahara plant and Okayama works respectively. Similarly, JPY 23,500/t ($ 220) for Kyushu and JPY 22,000/t ($ 206) for Takamatsu steel center.
Only Utsunomiya plant, a predominantly scrap export-based region in comparison to others and more into domestic sales, has witnessed a hike in prices from last week, after the Kanto tender results on 9th July’20 pushed the indicative prices, as well as Japanese scrap export, offers up.
Tokyo Steel‘s bids for scrap purchase from 17th July’2020
Price in JPY
Source: Tokyo Steel Reports
5,000 t H2 scrap booked via Kansai scrap export tender
Japan’s Kansai-tender concluded its scrap export tender on 14th July’20. The winning bid was awarded a total of 5,000 t of Japanese H2 at an average price of JPY 23,110/t ($216), FAS, in comparison to JPY 26,010/t in the last tender of Jun’20, down by JPY 2,900/t ($27) m-o-m, putting Japanese H2 scrap export prices at JPY 24,100/t FoB Japan basis.
On the other hand, South Korean buyers including Hyundai steel and other major EAF mills are bidding for H2 scrap at JPY 22000-22500/t FoB Japan, which has been completely rejected by the Japanese suppliers, who maintain that the workable price is at least JPY 24000/t FoB Japan, widening the gap between buyers and suppliers.
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