Japan: Tokyo Steel's 2nd scrap purchase price hike in a week

Japan's leading EAF mini mill- Tokyo Steel has announced its 2nd price hike in its domestic scrap purchase in a week. Bids have moved up by JPY 500/t ($ 5) for its Utsunomiya plant in Kanto region, effective from tomorrow, 5 Aug '20. Notably, the company has kept its bid prices for the other four works, as per the new circular released.

According to the new price hike, the company will pay JPY 23,000/t ($ 217) for H2 scrap delivered to Utsunomiya works in the Kanto region.

Meanwhile, prices will remain unchanged as the previous week for the other major works and the company will continue to pay JPY 22,500/t and JPY 23,000/t for H2 scrap delivered to Tahara plant and Okayama works respectively. Similarly, JPY 23,500/t for Kyushu and JPY 22,000/t for Takamatsu steel center.

Tokyo Steel's bids for scrap purchase from 5th Aug'2020

Price in JPY
Source: Tokyo Steel report

Last week South Korea's major steel manufacturer POSCO hiked its bid price for Japanese higher grade scrap- shindachi and shredded scrap at JPY 29,000/t CFR Korea, which is equivalent to around JPY 26,500/t FoB Japan basis, putting Japanese H2 scrap at JPY 24,500-25,000/t FoB Japan. The bids have increased by JPY 500/t in comparison to last bids presented by POSCO at JPY 24,000/t FoB basis on 23rd July '20.

Another major South Korean steel mill, Dongkuk Steel booked a Japanese H2 scrap bulk cargo last week. The company's bid for H2 scrap was reported at JPY 27,000/t CFR.