Japan's Tokyo Steel Cuts Scrap Purchase Price by USD 4-9
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Japan's leading EAF steel mini-mill - Tokyo Steel has reduced its scrap purchase prices after maintaining on higher side for almost one month. As per new price circular released, the steel manufacturer has cut prices by JPY 500/MT (USD 4) at Tahara, Okayama and Kyushu works and by JPY 1000/MT (USD 9) at its Takamatsu steel center.
However, prices for all grades at Utsunomiya and Shredder scrap at Tahara remained unchanged as against last set of prices. The revised prices are effective from 31st Oct'18.
Tokyo steel's H2 prices stand at JPY 38,500/MT (USD 341) at western Japan plant, Kyushu and at JPY 38,000/MT for Okayama works while prices at largest plant Tahara in central Japan and Utsunomiya plant in Kanto region stand at JPY 37,500/MT. Bids for the same grade noted at JPY 37,000/MT for its Takamatsu steel center.
Since past couple of days participants were waiting for Tokyo steel's price revision in order to have clarity on Japanese scrap prices. Earlier to this, Tokyo observed last price revision on 3rd Oct'18 pushing its prices to highest peak.
Japanese EAF steelmakers stayed active with increased production amid high domestic steel demand however, scrap exports remained very low on disparity in bids put by overseas buyers and offers from Japanese suppliers.
USD/JPY exchange rate stands today at 112.8 as against 114.5 levels recorded on 3rd Oct'18. Japanese Yen has appreciated by 2% in a months' time pulling exports further down.
Tokyo Steel's scrap purchase prices effective from 31st Oct'18 -
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 37,500 | 38,000 | 38,500 | 37,500 | 37,000 |
| First Grade | 37,000 | 37,500 | 38,000 | 37,500 | 36,500 |
| Second Grade | 35,500 | 36,000 | 36,500 | 36,000 | 35,000 |
| New Cutting Press A | 42,500 | 40,000 | 40,500 | 41,000 | 39,000 |
| Shredder A | 38,500 | 38,500 | 39,000 | 38,000 | 37,500 |
| Shredder C | 38,000 | 38,000 | 38,500 | 37,500 | 37,000 |
Prices in Japanese Yen/MT for transport on land;
Source: Tokyo Steel Reports
Japan's largest rebar producer expects global scrap prices to remain firm - Amid bullish local finish steel demand for 2020 Olympic construction activities, Japanese scrap prices are likely to stay strong despite marginal correction. Also Japan's largest rebar maker Kaye Steel expects global scrap prices not likely to turn down in the short term.
South Korean major EAF steelmakers observe rising scrap inventories - According to Steeldaily report, scrap inventories for 7 leading steelmakers in South Korea has recorded over 1 MnT this week. In the Seoul metropolitan area inventories hit last one year high and recorded at 683,000 MT while in southern area noted at 38,000 MT. This has resulted in successive price cuts for domestic scrap in South Korea.
Hyundai steel's cargo of 48,000 MT US scrap unloaded at Dangjin factory last week and supply of scrap seems to have increased steadily. In spite of special purchase of Japanese H2 last week by Dongkuk Steel, overall scrap demand is expected to remain low with further efforts to cut prices by leading steelmakers in South Korea.
