Japan: Tokyo Steel Slashes Scrap Bids; Utsunomiya Prices Drop 5 Month Low
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Following sharp fall in bids fetched in Japan's monthly scrap export tender 'Kanto Tetsugen' for Apr'18, Tokyo steel has registered its fourth price cut in Apr'18. Prices at Utsunomiya factory in Kanto region fell by total JPY 4,500/MT (USD 42) from peak reached in the last month.
Japan's leading EAF steel mini-mill - Tokyo Steel has cut its domestic scrap purchase prices for the fourth time in Apr'18. As per new price circular, the steel manufacturer has lowered domestic scrap purchase prices by JPY 500/MT (USD 5) at all five factories in Japan. The revised prices shall be effective from tomorrow i.e. 12th Apr'18.
Now H2 scrap fetches JPY 34,500/MT (USD 323) at largest work in central Japan-Tahara. While the same grade fetches JPY 33,000/MT (USD 309) at Utsunomiya works in Kanto region in north Japan. While for its Okayama plant, Kyushu factory Takamatsu Steel Center Company bids are at JPY 31,500/MT at JPY 32,000/MT and JPY 31,000/MT respectively.
After the recent price cut, Tokyo Steel's H2 scrap purchase prices have dropped to nearly 5 months low. For Utsunomiya factory, the current price of JPY 33,000/MT was last seen on 10 Nov'17 while in the same price revision on 10th Nov'17, Tahara work had witnessed last lowest price of JPY 34,000/MT for H2 in central Japan.
Through four price cuts registered so far in Apr'18, H2 scrap prices have dropped by JPY 3500/MT (USD 33) for Utsunomiya plant which comes in Kanto region. While for other four works scrap purchase prices moved down by JPY 2500/MT (USD 23) respectively.
Most of the participants now anticipate that scrap prices in Japan might have reached its temporary lowest and this could be the final price cut in the market.
Tokyo Steel's scrap purchase prices with effective from 12 Apr'18 -
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 34,500 | 31,500 | 32,000 | 33,000 | 31,000 |
| First Grade | 34,000 | 31,000 | 31,500 | 33,000 | 30,500 |
| Second Grade | 32,500 | 29,500 | 30,000 | 31,500 | 29,000 |
| New Cutting Press A | 38,500 | 33,500 | 34,000 | 35,000 | 33,000 |
| Shredder A | 35,000 | 32,000 | 32,500 | 33,500 | 31,500 |
| Shredder C | 34,500 | 31,500 | 32,000 | 33,000 | 31,000 |
Prices in Japanese Yen/MT for transport on land
Source: Tokyo Steel Reports
Average bids in 'Kanto Tetsugen' tender drop by USD 42/MT in Apr'18 -
Kanto Tetsugen, monthly ferrous scrap export tender concluded today (on 11th April) in Kanto region in Japan. The average bids for Apr'18 recorded at JPY 32,979/MT (USD 308), FAS which have decreased significantly by JPY 4,541/MT (USD 42) on M-o-M basis as against the average bids at JPY 37,520/MT (USD 350) in Mar'18. Moreover, average bids recorded in Apr'18 descended lowest so far in CY18.
Bids recorded in Kanto Tetsugen for Apr'18 pulled Japan's domestic H2 scrap price assessment down by JPY 500/MT further. Prices assessed in the range of JPY 32,500-33,500/MT (USD 304-313) for Kanto region while scrap prices stood in the range of JPY 31,000-32,000/MT (USD 291-300) for Gulf region in Japan.
Average scrap purchase prices for leading EAF steelmakers based in Tokyo, Osaka and Nagoya regions in Japan last assessed at JPY 33,500/MT for H2 and at around JPY 37,400/MT for New cutting press respectively.
