Japan: Tokyo Steel Cuts Scrap Purchase Price by USD 5-9
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As per the new price circular released, Japan's leading EAF mini-mill - Tokyo Steel has further lowered its domestic scrap purchase price by JPY 500-1000/MT (USD 5-9) today. This is the 2nd price cut by the company in 3 days after six weeks of silence. The new prices for all grades shall be effective from tomorrow (29th Jan'20).
After the said price lowering, the company will pay JPY 24,000 /MT (USD 220) for H2 scrap delivered at Tahara plant in the central region, Kyushu works in the western region and Utsunomiya works located in the Kanto region. For H2 delivered to Okayama plant and Takamatsu Steel Center, new price will be JPY 22,500 /MT (USD 207) and JPY 21,500/MT (USD 198) levels respectively.
Notably, the price for the higher grade "New breaking press A" scrap was lowered by JPY 1000/MT (USD 9) for two of its works namely- Okayama plant and Takamatsu Steel center, while for remaining three plants- prices have cut by JPY 500 /MT (USD 5).
Earlier today it was reported that South Korean steel mills have also lowered their purchase bids for Japanese H2 procurement, with Hyundai steel bidding for H2 scrap at JPY 25,500/MT (USD 234) FOB.
As per the current sentiments, the market is expecting further price cuts in the domestic scrap purchase price for Japanese mills
| Name of Work of Tokyo Steel | |||||
| Scrap Grade | Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center |
| Special Class (H2) | 24,000 | 22,500 | 24,000 | 24,000 | 21,500 |
| First Grade | 23,500 | 22,000 | 23,500 | 24,000 | 21,000 |
| Second Grade | 22,000 | 20,500 | 22,000 | 22,500 | 19,500 |
| New Breaking Press A | 26,500 | 23,500 | 26,000 | 26,500 | 22,500 |
| Shredder A | 25,500 | 23,000 | 24,500 | 24,500 | 22,000 |
| Shredder C | 25,000 | 22,500 | 24,000 | 24,000 | 21,500 |
Prices in JPY/MT,
Source: Tokyo Steel Reports
