Japan: Tokyo Steel Cuts Scrap Purchase Prices at 3 Works
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As per new price circular released, Japan's leading EAF mini-mill - Tokyo Steel has lowered the domestic H2 scrap purchase price by JPY 500/MT (USD 5) at three of its five works in Japan. New prices for all grades shall be effective from tomorrow (1st June'19).
The steelmaker had last revised its scrap purchase price 3 weeks ago on 9th May'19, while this is the 8th consecutive price lowering for Tahara and Okayama works since April'19, as local market sentiments remain dull.
With the recent price cut, the company will pay JPY 30,000/MT (USD 276) for H2 scrap delivered at Tahara plant in central Japan and Kyushu works in the Western region while JPY 29,000/MT (USD 266) for Okayama plant. For H2 scrap delivered to Utsunomiya plant in the Kanto region and Takamatsu steel center, price remains unchanged at JPY 29,000/MT and JPY 28,000/MT (USD 257) respectively.
Notably, as per Tokyo steel's scrap prices maintained with SteelMint, H2 scrap prices for delivery to Tahara and Okayama have reached 5 month low levels, while it remains at around 2 years low levels for Utsunomiya works. For few of the other high grade scrap, purchase price for Takamatsu Steel Center works has been lowered by JYP 500/MT.
Domestic market has not seen much improvement in scrap purchase on account of low finished steel demand, with Trade volumes remaining on lower side. Japanese EAF steelmakers continue to hold H2 scrap prices in the range JPY 29,000-31,000/MT.
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class (H2) | 30,000 | 29,000 | 30,000 | 29,000 | 28,000 |
| First Grade | 29,500 | 28,500 | 29,500 | 29,000 | 27,500 |
| Second Grade | 28,000 | 27,000 | 28,000 | 27,500 | 26,000 |
| New Breaking Press A | 33,500 | 31,000 | 32,000 | 31,000 | 30,000 |
| Shredder A | 31,500 | 29,500 | 30,500 | 29,500 | 28,500 |
| Shredder C | 31,000 | 29,000 | 30,000 | 29,000 | 28,000 |
Source: Tokyo Steel Reports
