Falling scrap prices in Kanto region along with decline in bids by South Korean steel mills has resulted in fall in domestic scrap purchase prices by Tokyo Steel at all its works today.
Japan’s leading EAF steel producer – Tokyo Steel has reduced its domestic scrap purchase prices by Yen 1000/MT (USD 9).
Now H2 scrap fetches JPY 37,000/MT (USD 349) at largest work in central Japan-Tahara. While the same grade fetches JPY 36,500/MT (USD 344) at Utsunomiya works in north Japan. While for its Okayama plant, Kyushu factory Takamatsu Steel Center Company bids are at JPY 34,000/MT at JPY 34,500/MT and JPY 33,500/MT respectively.
Scrap prices in Japan have softened amid decline in scrap prices in Kanto and Gulf regions. Bids in Gulf region are still lower by Yen 500/MT lower than other regions. Also higher scrap inventories with EAF steel manufacturers than demand has also put scrap bids under pressure.
South Korea’s leading steel mill – Hyundai Steel has today slashed bids for high grade Japanese scrap by Yen 1000/MT (USD 9). However the steel maker did not put bids for H2 grade scrap owing to ample inventories and sufficient supply.
Earlier to this on 20 Mar’18, Tokyo Steel raised scrap purchase prices at Utsunomiya works by USD 5/MT. However the prices at all other works remained unchanged.
Tokyo Steel’s scrap purchase prices with effective from 31 Mar’18 –
| Particulars | Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center |
| Special Class | 37,000 | 34,000 | 34,500 | 36,500 | 33,500 |
| First Grade | 36,500 | 33,500 | 34,000 | 36,500 | 33,000 |
| Second Grade | 35,000 | 32,000 | 32,500 | 35,000 | 31,500 |
| New Cutting Press A | 41,000 | 36,000 | 36,500 | 38,500 | 35,500 |
| Shredder A | 37,500 | 34,500 | 35,000 | 37,000 | 34,000 |
| Shredder C | 37,000 | 34,000 | 34,500 | 36,500 | 33,500 |
Prices in Japanese Yen/MT for transport on land
Source: Tokyo Steel Reports
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