Japan: Tokyo Steel Observes 3rd Price Cut in Scrap Purchase in a Week
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Japan's leading EAF mini-mill - Tokyo Steel has lowered its scrap purchase price at all 5 of its works, by JPY 500-1000/MT (USD 5-9). This comes as the 3rd price revision made by the company in Jan'20 in a span of just one week. The new prices for all grades shall be effective from tomorrow (31st Jan'20).
After the said price cut, the company will pay JPY 23,500/MT (USD 216) 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, the new price will be JPY 22,000 /MT (USD 202) and JPY 21,000/MT (USD 193) levels respectively.
Notably, the price for the higher grade "New breaking press A" scrap was lowered by JPY 1000/MT (USD 9) at Utsunomiya works located in the Kanto region and the new prices will be JPY 25,500 /MT (USD 234).
After recent fall in bids by South Korean mills for Japanese scrap imports, in addition to the other overseas buyers like Vietnam too bidding at lower levels, the domestic prices in the Japanese scrap were expected to fall significantly. The prices have fallen by around JPY 1500/MT (USD 14) till now as compared to price levels in Dec'19.
Hyundai Steel books USA cargo- As per reports, Hyundai Steel books a 45000 MT of bulk cargo comprising of HMS 1 from a USA origin scrap yard at a USD 287.5/MT CFR level. The cargo shipment is expected to arrive in April'20.
Tokyo Steel's Bids For Scrap Purchase from 31st Jan'2020.
| Name of Work of Tokyo Steel | |||||
| Scrap Grade | Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center |
| Special Class (H2) | 23,500 | 22,000 | 23,500 | 23,500 | 21,000 |
| First Grade | 23,000 | 21,500 | 23,500 | 23,500 | 20,500 |
| Second Grade | 21,500 | 20,000 | 21,500 | 22,000 | 19,000 |
| New Breaking Press A | 26,000 | 23,000 | 25,500 | 25,500 | 22,000 |
| Shredder A | 25,000 | 22,500 | 24,000 | 24,000 | 21,500 |
| Shredder C | 24,500 | 22,000 | 23,500 | 23,500 | 21,000 |
Prices in JPY/MT,
Source: Tokyo Steel Reports
