Japan: Tokyo Steel Cuts Scrap Purchase Bids By USD 5
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As per new price circular released, Japan's leading EAF mini-mill - Tokyo Steel has lowered its scrap purchase price at 4 of its works, by JPY 500/MT (USD 5), while keeping the prices at its Kyushu works in Western region unchanged. The new price revision comes after a gap of 2 weeks, while the new prices for all grades shall be effective from tomorrow (4th Oct'19).
After the said price cut, the company will pay JPY 23,000/MT (USD 215 ) for H2 scrap delivered at its Tahara plant in Central Japan and Utsunomiya plant in Kanto region, while the new price for Okayama plant and Takamatsu steel centre stand at JPY 21000/MT (USD 196 ) and JPY 20,000/MT (USD 187 ) respectively. The price for H2 delivery to Kyushu works remains unchanged at JPY 23,500/MT (USD 219).
Amid a continuous downturn in the Japanese scrap market since the last 6 months, the current price lowering by the company comes after 6 successive price cuts in Sep'19 alone, while the prices have come down by JPY 2500-3000/MT in the last one month. In comparison to the peak in bids achieved at the end of March'19, the prices have now successively dropped by JPY 11,000-12000/MT in total, from JPY 34,000-35,000/MT levels 6 months ago, with no signs of bottoming out under the current market situation.
With the continuous fall in domestic scrap prices, the export offers also followed the downtrend. Japan's Kansai Iron and Steel Federation's latest monthly tender for Oct'19, concluded on 01st Oct'19, in which the winning bid by 'Arahoe' was awarded a total 5,000 MT of Japanese H2 at an average of JPY 23,030/MT (USD 215), FAS. The current bid is JPY 240/MT (USD 2) lower than the previous tender result on 17th Sep'19, which was the 2nd Tender in Sep'19.
Tokyo steel's scrap purchase price effective from 4th Oct'19 -
| Scrap Grade | Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center |
| Special Class (H2) | 23,000 | 21,000 | 23,500 | 23,000 | 20,000 |
| First Grade | 22,500 | 20,500 | 23,000 | 23,000 | 19,500 |
| Second Grade | 21,000 | 19,000 | 21,500 | 21,500 | 18,000 |
| New Breaking Press A | 24,500 | 22,500 | 25,500 | 25,000 | 21,500 |
| Shredder A | 24,500 | 21,500 | 24,000 | 23,500 | 20,500 |
| Shredder C | 24,000 | 21,000 | 23,500 | 23,000 | 20,000 |
Prices in JPY/MT,
Source: Tokyo Steel Reports
