Japan: Tokyo Steel raises scrap purchase price further tracking export gains

Japan's leading EAF mini mill- Tokyo Steel has raised its scrap purchase price by JPY 500/t ($4.7) in a time span of just five days for all of its five works. Revised prices will be effective from tomorrow, 26th Aug '20.

Now the company would pay JPY 25,500/t ($240) for H2 scrap delivered at its Tahara plant in Central Japan and JPY 26,000/t ($244) for the Utsunomiya plant in the Kanto region. Prices are at two-months high for the Utsunomiya plant as similar levels were last seen on 25th Jun '20.

Tightened scrap availability and increased domestic finished steel demand for construction activities in Japan resulted in hike in scrap purchase price. Also, Japanese scrap export prices surged following hike in Kanto bids. SteelMint's assessment for H2 scrap export stood at JPY 28,000/t FoB last week.

Japanese scrap market continues to remain strong despite Korean steel mills having reduced their import volumes amid rising domestic scrap inventories. Market expects prices to come down over less bookings from South Korean mills. However, Japan's strong domestic market is supporting sentiments.

Tokyo Steel's bids for scrap purchase from 26th Aug '20Price in JPY
Source: Tokyo Steel report

Bids in Kansai H2 scrap export tender rise by $38 m-o-m

Japan's Kansai-tender scrap export tender concluded today. The winning bid was awarded a total of 5,200 t of Japanese H2 at an average price of JPY 27,110/t ($256), FAS, in comparison with JPY 23,110/t in the previous tender of Jul '20, climbed up by JPY 4,000/t ($38) m-o-m, putting Japanese H2 scrap export offers at JPY 28,000/t FoB Japan basis. The successful bid was made at the highest price at JPY 28,120/t was reported on Jul '19, as per data maintained with SteelMint.