Japan: Tokyo Steel Hikes Scrap Purchase Price by USD 5-9
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As per new price circular released, Japan's leading EAF steel mini-mill - Tokyo Steel has raised domestic scrap purchase price by JPY 1000/MT (USD 9) at Western region's Okayama plant and by JPY 500/MT (USD 5) at remaining four plants amid strengthening local scrap prices. New prices shall be effective from tomorrow.
The steelmaker will pay JPY 32,500/MT (USD 294) for H2 scrap delivered to Utsunomiya plant situated in the Kanto region. While revised H2 price stands JPY 31,500/MT at the largest plant, Tahara in the central area, JPY 27,000/MT at Takamatsu steel center, JPY 31,500/MT for Kyushu works and JPY 28,500/MT for Okayama works.
Tokyo Steel announced prices for steel products for Mar'19 yesterday wherein it kept prices unchanged for the third successive month amid dull domestic demand and softer overseas market. Rebar prices continued to remain at JPY 69,000/MT and H beam prices at JPY 89,000/MT for March deliveries.
The average selling price of H2 in Japan's local market stands in the range JPY 31,000-32,000/MT, FoB. Participants expect that the upward trend likely to continue amid tight supply in the near terms.
South Korean steel scrap inventories remain high - According to SteelDaily's report, ferrous scrap inventories available in hands with leading seven South Korean Steelmakers reported around 967,000 MT this week. Following high inventories, demand for Japanese scrap from leading steelmakers like Hyundai and Dongkuk steel less likely to recover in the near terms.
Recently, a steel mill concluded a contract of Russian A3 scrap comprising 16,000 MT at USD 325/MT, CFR for Apr'19 shipments. Prices jumped USD 24/MT as against last Russian contract done last month. In order to stabilize the supply-demand situation, the steelmaker could have concluded the import deal.
Tokyo Steel's scrap purchase price effective from 20th Feb'19 -
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class (H2) | 31,500 | 29,500 | 32,000 | 32,500 | 27,500 |
| First Grade | 31,000 | 29,000 | 31,500 | 32,500 | 27,000 |
| Second Grade | 29,500 | 27,500 | 30,000 | 31,000 | 25,500 |
| New Cutting Press A | 36,500 | 31,500 | 34,000 | 36,000 | 29,500 |
| Shredder A | 33,000 | 30,000 | 32,500 | 33,000 | 28,000 |
| Shredder C | 32,500 | 29,500 | 32,000 | 32,500 | 27,500 |
Prices in Japanese Yen/MT for transport on land,
Source: Tokyo Steel Reports
