Japan: Tokyo Steel Raises Scrap Procurement Price at its Tahara Plant
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Japan's leading EAF mini-mill - Tokyo Steel has observed another price hike for scrap procurement at one of its works - Tahara Plant, increasing its bids by JPY 500/MT (USD 5) on majority of grades and on few grades by JPY 1000/MT. However prices at its other four works unchanged for now. The new prices for all grades shall be effective from tomorrow (04 Dec'19).
After the said price hike, the company will pay JPY 24,000 /MT (USD 220) for H2 scrap delivered at Tahara plant in the central region.
For H2 scrap delivered to Kyushu works in the western region, Utsunomiya works located in the Kanto region, Okayama plant and Takamatsu Steel Center the prices remain unchanged at JPY 24,500/MT (USD 225), JPY 24,000/MT (USD 220), JPY 22,000 / MT (USD 202) and JPY 21,000/MT (USD 193) levels respectively.
The uptrend in Japanese domestic scrap market started from mid Nov'19, after a sharp rise in 'Kanto-tender' winning bids, with domestic prices rising on support from the significantly increased export offers to overseas buyers. Tokyo Steel, after observing 3 price hikes in the last 2 weeks of Nov'19, continues to increase its scrap bids as the global market is expected to continue moving up in the winter months.
The upcoming Kanto tender's result for Dec'19 month will give further clarity on the market scenario.
Tokyo Steel's Bids For Scrap Purchase from 04th Dec'19
| Scrap Grade | Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center |
| Special Class (H2) | 24,000 | 22,000 | 24,500 | 24,000 | 21,000 |
| First Grade | 23,500 | 21,500 | 24,000 | 24,000 | 20,500 |
| Second Grade | 22,000 | 20,000 | 22,500 | 22,500 | 19,000 |
| New Breaking Press A | 26,500 | 23,500 | 26,500 | 26,000 | 22,500 |
| Shredder A | 25,500 | 22,500 | 25,000 | 24,500 | 21,500 |
| Shredder C | 25,000 | 22,000 | 24,500 | 24,000 | 21,000 |
Prices in JPY/MT,
Source: Tokyo Steel Reports
