Japan: Tokyo Steel Observes its First Price Hike for Scrap Purchase in 5 Months
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Japan's leading EAF mill - Tokyo Steel has announced a hike in its scrap purchase price for the first time since mid Dec'19, as domestic scrap market followed the uptrend in Japanese export offers, which had been showing improvement since the last 3-4 weeks. The purchase bids were hiked by a sharp JPY 1000/MT (USD 9) at all of its five works and the new prices for all grades shall be effective from tomorrow (22nd May'20).
After the said price hike, the company will pay JPY 19,500 /MT (USD 181) for H2 scrap delivered at the Tahara plant in the central region and Utsunomiya works located in the Kanto region, while for Okayama plant and Kyushu works in the western region new price set at JPY 18,500 /MT (USD 172). For H2 delivered to Takamatsu Steel Center the new price will be at JPY 17,500/MT (USD 162).
Prior to this, the prices were in a continuous downtrend for over five months, on weakening domestic demand, during which the bids came down successively by a total of JPY 5,500/MT. As per the reports, the scrap market now rising gradually in the Kanto area, as the cases of covid-19 pandemic has reduced significantly in the region. On the other hand, due to the less movement of cargo, steelmakers are trying to restock their inventory quickly.
Domestic scrap purchase prices are further expected to increase on a continued tight supply and rising demand.
Tokyo Steel Ferrous Scrap Purchase Price from 22nd May'20
| Name of Work of Tokyo Steel | |||||
| Scrap Grade | Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center |
| Special Class (H2) | 19,500 | 18,500 | 18,500 | 19,500 | 17,500 |
| First Grade | 19,000 | 18,000 | 18,000 | 19,500 | 17,000 |
| Second Grade | 17,500 | 16,500 | 16,500 | 18,000 | 15,500 |
| New Breaking Press A | 21,500 | 19,500 | 20,000 | 21,500 | 18,500 |
| Shredder A | 21,000 | 19,000 | 19,000 | 20,000 | 18,000 |
| Shredder C | 20,500 | 18,500 | 18,500 | 19,500 | 17,500 |
Price in JPY
Source: Tokyo Steel Reports
