Japan: Tokyo Steel hikes scrap purchase price, bids in Tahara hit over one-year high

Japan's leading EAF mill- Tokyo Steel has announced another price hike for scrap purchase price by JPY 500/t ($5) for all its four plants, effective from tomorrow (6th Nov'20). This is the company's second price hike in a week. Notably, prices have not been this high since touching JPY 28,000/t for the Tahara plant on 21st Jun'19.

After today's price hike announcement, the company would pay JPY 28,000/t ($268) for H2-scrap delivered to Tahara, Kyushu and Okayama work. However, the bid price for Takamatsu steel centre stands at JPY 27,000/t ($258). Prices for Utsunomiya works in the Kanto region have been kept unchanged.

Tokyo Steel's bids for scrap purchase from 6th Nov'20Price in JPY
Source: Tokyo Steel report

Few construction-related demands have resumed after monsoon, while the amount of scrap inventory in domestic electric furnaces is declining, strong overseas demand is pushing up domestic prices. Higher export prices of Japanese scrap prompted Tokyo steel to raise domestic collection prices, marking the second price increase in just one day.

Hyundai bid for Japanese scrap up by JPY 2,500/t ($24)

South Korean mill - Hyundai Steel has hiked its bids for Japanese scrap yesterday, bids have increased by JPY 2,500/t ($24) against last bids placed in mid-Oct'20. However, the company did not place any bid for H2 scrap this time. Tight availability of scrap and export prices in Japan has pushed up global scrap offers.