Japan: Tokyo Steel Raises Scrap Purchase Price by upto USD 9/MT
Mining News Pro - Following rise in Japan’s monthly scrap export tender today for August month, leading EAF steel mini-mill - Tokyo Steel has announced hike in its scrap purchase prices further at all five plants. As per new price circular released, the steel manufacturer has raised prices by JPY 500/MT (USD 5) at Utsunomiya and Tahara plant while by JPY 1000/MT (USD 9) at three western Japan plants. Revised prices shall be effective from tomorrow i.e. 10th Aug’18.
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Tokyo Steel fetches H2 scrap at JPY 36,000/MT (USD 324) for its Kanto region based works i.e. Utsunomiya and at JPY 35,500/MT for largest works in central Japan-Tahara. After this price hike, bids for the same grade has increased to JPY 34,500/MT levels at Kyushu plant and JPY 34,000/MT at Okayama works in Western Japan while for its Takamatsu Steel Center company keeps bids at JPY 33,500/MT in South Japan.

Earlier to this, on 04th August, Tokyo Steel increased prices at Utsunomiya plant for two high grade scrap by JPY 500/MT amid tightened supply. After witnessing annual maintenance activities at all its plants scheduled during end July and first week of August, Tokyo Steel resumed activities and has hiked prices in order to fetch considerable inventories amid increasing operating hours.

Tokyo Steel has observed first H2 price revision at Utsunomiya plant after six weeks` time.Thus, H2 price gap between Okayama and Utsunomiya plant has narrowed down to JPY 2,000/MT now.

Average H2 scrap export offers from suppliers assessed in the range of 35,500-36,000/MT (USD 319-324) FoB for Kanto region and at around JPY 35,000/MT from Gulf region in Japan.

Tokyo Steel’s scrap purchase prices effective from 10th Aug’18 –

ScrapGrade

 

NameofWorkofTokyoSteel

TaharaPlant

OkayamaPlant

KyushuFactory

UtsunomiyaFactory

TakamatsuSteelCenter

SpecialClass

35,500

34,000

34,500

36,000

33,500

FirstGrade

35,000

33,500

34,000

36,000

33,000

SecondGrade

33,500

32,000

32,500

34,500

31,500

NewCuttingPressA

40,500

36,000

36,500

39,000

35,500

ShredderA

36,000

34,500

35,000

36,500

34,000

ShredderC

35,500

34,000

34,500

36,000

33,500

Prices in Japanese Yen/MT for transport on land
Source: Tokyo Steel Reports

Japan’s domestic scrap prices increase further, exports remain sluggish – The buying activities by major EAF steelmakers in Japan has increased now on decline in electricity rates. EAF steelmakers are likely to operate at extended hours in order to increase their output ahead of Obon holidays.

Scrap purchase bids placed by major South Korean steelmakers like Hyundai and Dongkuk stood still very low as compared to suppliers’ expectations and exports remain sluggish amid heavy summer season.

South Korean domestic scrap prices move up – Leading South Korean steelmakers like Hyundai, Dongkuk, SeAH, Kosco, Korean, Daehan and YK Steel have raised local scrap purchase prices by KRW 10,000-20,000/MT (USD 10-20) in last couple of days amid improving demand for finish steel.

Hyundai Steel books another USA origin bulk scrap cargo – Hyundai Steel has signed another new contract for 45,000 MT of HMS 1 from USA at USD 349/MT, CFR South Korea for October delivery. According to reports, the steelmaker has continued to import bulk scrap vessels from USA amid high Japanese scrap prices.

 

 


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