Japan: Tokyo Steel scrap purchase price close to 2-month high

Japan's leading EAF steel manufacturer- Tokyo Steel - has announced its third price hike for its domestic scrap purchase prices for Aug' 20. Bids have moved up by JPY 1000/t ($9) for all of its five plants, effective from tomorrow, 18th Aug '20.

The company would pay JPY 24,000/t ($225) for H2 scrap delivered at its Tahara plant in Central Japan and JPY 24,500/t ($230) for the Utsunomiya plant in the Kanto region. Prices have not been this high since touching JPY 25,000/t for the Utsunomiya plant on 27th Jun '20.

Japan's domestic scrap prices had remained unchanged last week on slow trading during the 'Obon' festival holiday. Domestic sales and exports had slowed down last week after continuing rise in the prior five weeks.

Tokyo Steel's bids for scrap purchase from 18th Aug '20

Price in JPY
Source: Tokyo Steel report

Market awaits Kanto scrap export tender results - Kanto Tetsugen - Japan's monthly ferrous scrap export tender - is scheduled on 19th Aug '20. Japanese scrap suppliers are waiting for the tender result, which usually sets the market direction. There is an expectation that the bid prices may sharply for the tender. In Jul '20, a total of 22,000 t of Japanese H2 scrap was awarded at an average price of JPY 23,574/t FAS in this tender.

Japanese scrap export offers remain high - Japanese scrap export offers for H2 scrap were at JPY 25,500/t FoB last week, unchanged from the preceding week, while bids were heard at JPY 25,000/t FoB.