Japan: Tokyo Steel Raises Scrap Purchase Price by USD 5
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Japan's leading EAF mini-mill - Tokyo Steel group has announced another price hike for scrap procurement at four of its works, increasing its scrap purchase bids by JPY 500/MT (USD 5) for all of its grades. This is the second price hike observed in a week and prices for all grades shall be effective from tomorrow (07 Dec'19).
As per the new price circular released, the company will pay JPY 24,500 /MT (USD 226) for H2 scrap delivered at Tahara plant in the central region and Utsunomiya works located in the Kanto region. For H2 scrap delivered to Okayama plant and Takamatsu Steel Center, prices will be and 22,500/MT (USD 207) and JPY 21,500/MT (USD 198) levels respectively. However, western region based Kyushu factory's purchase price remains unchanged since 26th of Nov'19, with bids for H2 scrap remaining at 24,500/MT (USD 226) level.
After observing three price hikes in Nov'19 the company has already raised its bids twice this month amid rising export offers for Japanese scrap, while the Kanto tender result, expected to be declared next week will provide further inside to the Japanese scrap market.
Tokyo Steel's Bids For Scrap Purchase from 07th Dec'19
| Name of Work of Tokyo Steel | |||||
| Scrap Grade | Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center |
| Special Class (H2) | 24,500 | 22,500 | 24,500 | 24,500 | 21,500 |
| First Grade | 24,000 | 22,000 | 24,000 | 24,500 | 21,000 |
| Second Grade | 22,500 | 20,500 | 22,500 | 23,000 | 19,500 |
| New Breaking Press A | 27,000 | 24,000 | 26,500 | 26,500 | 23,000 |
| Shredder A | 26,000 | 23,000 | 25,000 | 25,000 | 22,000 |
| Shredder C | 25,500 | 22,500 | 24,500 | 24,500 | 21,500 |
Prices in JPY/MT,
Source: Tokyo Steel Reports
