After raising scrap purchase prices on 06th Dec by upto USD 9/MT, Tokyo Steel has raised prices further by USD 5/MT(JPY 500) at its largest work Tahara while as per new price revision with effect from today prices at all other four works kept unchanged.
Japan’s leading EAF steel producer – Tokyo Steel has raised scrap purchase prices consecutively for the second time in Dec’17. The Company has increased its scrap buying prices further by JPY 500/MT (USD 5) at its Tahara works while prices remained same at all other works of the company.
As per latest price circular, new prices would be effective from today (i.e. 12th Dec’17) for all grades of scrap at all five works in Japan.
Now H2 scrap fetches JPY 36,500/MT (USD 322) at largest work in central Japan-Tahara. While the same grade fetches JPY 35,500/MT (USD 313) at Utsunomiya works in north Japan, H2 bids are placed at JPY 35,000/MT(USD 308) for Okayama and Kyushu works in west Japan while for its Takamatsu Steel Center company keeps bids at JPY 34,500/MT (USD 304).
Earlier to this, the steel maker had raised scrap purchase prices on 06 Dec’17 by USD 9/MT (JPY 1000) at its Utsunomiya work while by USD 5/MT (JPY 500) at all other four works in Japan.
Recently many of the South Korean steel mills have raised scrap purchase prices in order to fetch higher volumes of scrap. Daehan Steel and Hyundai Steel placed Japanese H2 scrap bids at JPY 36,000/MT and JPY 35,000/MT respectively.
Japanese H2 scrap reference prices now hiked to JPY 35,000/MT (USD 308), Fob Japan while for New Cutting (Press) scrap to JPY 37,300/MT (USD 329), FoB Japan.
Steel demand in Japan continues to remain strong amid bullish construction activities taking place for 2020 Olympics in Tokyo and rising production from automakers.
Tokyo Steel’s scrap purchase prices with effective from 12 Dec’17 –
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 36,500 | 35,000 | 35,000 | 35,500 | 34,500 |
| First Grade | 36,000 | 34,500 | 34,500 | 35,500 | 34,000 |
| Second Grade | 34,500 | 33,000 | 33,000 | 34,000 | 32,500 |
| New Cutting Press A | 40,000 | 37,000 | 37,000 | 37,000 | 36,500 |
| Shredder A | 37,000 | 35,500 | 35,500 | 36,000 | 35,000 |
| Shredder C | 36,500 | 35,000 | 35,000 | 35,500 | 34,500 |
Prices in Japanese Yen/MT for transport on land (Exchange Rate USD 1 = JPY 113.5)
Source: Tokyo Steel Reports
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