Japan: Tokyo Steel Slashes Scrap Purchase Price at Utsunomiya by USD 9
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As per new price circular released, Japan's leading EAF steel mini-mill - Tokyo Steel has lowered domestic scrap purchase price by JPY 1000/MT (USD 9) at Utsunomiya work located in the Kanto region. On the other hand, prices for the remaining four works have been remained unchanged in Japan. New prices for all grades shall be effective from tomorrow (03rd Apr'19).
With a recent price cut, the company will pay JPY 33,500/MT (USD 301) for H2 delivered to Utsunomiya plant in the Kanto region while JPY 35,000/MT (USD 314) at Tahara in central Japan and Kyushu works, JPY 33,500/MT at Okayama and JPY 32,000/MT at Takamatsu steel center respectively.
What could be the impact of Tokyo's scrap price cut? Participants believe that Tokyo's price cut likely to impact South Korean largest scrap buyer, Hyundai Steel's this weeks' import bidding for Japanese scrap. Also, this could impact Japan's Kanto monthly scrap export tender for April which is scheduled in the next week.
Prior to this, on 28th Mar'19, Tokyo Steel lowered scrap price at Utsunomiya after almost 3 months by JPY 500/MT thus total fall of JPY 1,500/MT in a last week's time is likely to impact other EAF steelmakers scrap buying prices in Japan.
Japanese Yen has depreciated around 1% against USD in the last seven days. USD/JPY rate stands at 111.3 level today against 110.3 a week ago.
Tokyo Steel's scrap purchase price effective from 03rd Apr'19 -
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class (H2) | 35,000 | 33,500 | 35,000 | 33,500 | 32,000 |
| First Grade | 34,500 | 33,000 | 34,500 | 33,500 | 31,500 |
| Second Grade | 33,000 | 31,500 | 33,000 | 32,000 | 30,000 |
| New Cutting Press A | 40,000 | 35,500 | 37,000 | 37,000 | 34,000 |
| Shredder A | 36,500 | 34,000 | 35,500 | 34,000 | 32,500 |
| Shredder C | 36,000 | 33,500 | 35,000 | 33,500 | 32,000 |
Prices in Japanese Yen/MT for transport on land,
Source: Tokyo Steel Reports
