Japan: Tokyo Steel`s 2nd Scrap Purchase Price Cut in a Week`s Time

According to Mining News Pro -Japan’s leading EAF steel mini-mill - Tokyo Steel has today announced reduction in its scrap purchase prices. This is 2nd price cut made by the mill in a week’s time. Prior to this the steel mill had slashed prices by JPY 500-1000/MT on 31 Oct’18.

In its price cut announced today prices have come down by JPY 500-1500/MT varying as per grades. At central Japan`s Tahara works prices reduced by JPY 1500/MT for two grades (Electricity A and Special A) and by JPY 1000/MT for rest all grades. Okayama factory observed price cut by JPY 1000/MT While other plants witnessed JPY 500/MT price cut for all scrap grades.The revised prices are effective from 3rd Nov’18.

Tokyo steel’s H2 price stands at JPY 38,000/MT (USD 337) at western Japan plant, Kyushu and at JPY 37,000/MT for Okayama works while prices at largest plant Tahara in central Japan and Utsunomiya plant in Kanto region stand at JPY 36,500/MT and JPY 37,000/MT respectively. Bids for the same grade noted at JPY 36,500/MT for its Takamatsu steel center.

Although ferrous scrap market has entered the adjustment phase, finish steel manufacturers are unlikely to soften the sales attitude due to the rise in semi-finish prices and transportation costs in Japan at the moment.

Tokyo Steel’s scrap purchase prices effective from 3rd Nov’18 -

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

Steel Scrap inventory on major South Korean mills remain on higher side - Price of Japanese steel scrap is likely to fall further as scrap inventory with major mills has witnessed increase. Retailers continue to release scrap inventories rather than stockpiling them.