Japan: Tokyo Steel Cuts Scrap Purchase Price Further By USD 5

As per new price circular released, Japan's leading EAF mini mill - Tokyo Steel has lowered its scrap purchase price at 4 of its 5 plants, by JPY 500/MT (USD 5), while keeping the prices at its Utsunomiya works in Kanto region unchanged. The new prices for all grades shall be effective from tomorrow (21st Sept'19).

After the said price cut, the company will pay JPY 23,500/MT (USD 218) for H2 scrap delivered at its Tahara plant in Central Japan and Kyushu works (western region), while the new price for Okayama plant and and Takamatsu steel centre stand at JPY 21500/MT (USD 199) and JPY 20,500/MT (USD 190) respectively.

Notably, this the 6th Price cut by the company in Sep'19 as yet, while the prices have dropped by around JPY 2000/MT across plants in this month, as the sharp downturn in the Japanese domestic scrap market continues amid little support from slow finished steel sales.

In line with the sharply falling Japanese scrap prices, Japan's Iron and Steel Association's price index for domestic scrap also fell sharply this week. The index currently stands at JPY 22,000/MT for H2 scrap, down JPY 1000/MT W-o-W, while a region-wise breakup puts H2 scrap price for Kanto and Kansai region at JPY 22,700/MT and JPY 23,000/MT ex-works respectively

Export offers of Japanese scrap are also decreasing sharply with Kansai Iron and Steel Federation's 2nd tender of Sep'19 witnessing a decline by JPY 1840/MT (USD 17) in its winning bid, currently standing at JPY 23,270/MT, FAS (USD 215)

Tokyo steel's scrap purchase price effective from 21st Sep'19-