As per new price circular released, Japan’s leading EAF steel mini-mill – Tokyo Steel has raised domestic scrap purchase price further by JPY 500/MT (USD 5) at all five works effective from tomorrow (02nd Mar’19). The steelmaker has witnessed a total JPY 1,500 lift in three price hikes for domestic scrap respectively on 26th Feb, 28th Feb and 2nd March this week in Japan.
The company will pay JPY 34,500/MT (USD 309) for H2 scrap delivered to Utsunomiya plant situated in the Kanto region. While revised H2 price stands JPY 33,500/MT at the largest plant Tahara in the central area, JPY 34,000/MT for Kyushu works, JPY 29,500/MT at Takamatsu steel center and JPY 31,500/MT at Okayama work.
JPY depreciated by 1% against USD W-o-W – USD/JPY exchange rate stands at 111.9 today which was trading at 110.6 a week ago. Depreciation of JPY could have also resulted in rising domestic scrap prices as suppliers could eye export markets for higher margins.
The average H2 offers assessed in the range JPY 33,500-34,500/MT (USD 300-308), FoB Tokyo and collection rates in the Gulf region remained in the range JPY 32,500-33,500/MT. Japanese domestic scrap prices are likely to maintain an upward trend on rising outlook. Following Tokyo’s lead, many EAF steelmakers have lifted scrap prices in the Kanto region amid continuing supply and demand tightness.
According to Japan metal daily report, Kanto association’s around 5,000 MT scrap shipments are scheduled between 28th Feb-4th March and remaining tonnages are to be shipped in next subsequent days, thus, supply-side may remain tight in the near terms.
Tokyo Steel’s scrap purchase price effective from 02nd Mar’19 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class (H2) | 33,500 | 31,500 | 34,000 | 34,500 | 29,500 |
| First Grade | 33,000 | 31,000 | 33,500 | 34,500 | 29,000 |
| Second Grade | 31,500 | 29,500 | 32,000 | 33,000 | 27,500 |
| New Cutting Press A | 38,500 | 33,500 | 36,000 | 38,000 | 31,500 |
| Shredder A | 35,000 | 32,000 | 34,500 | 35,000 | 30,000 |
| Shredder C | 34,500 | 31,500 | 34,000 | 34,500 | 29,500 |
Prices in Japanese Yen/MT for transport on land,
Source: Tokyo Steel Reports
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