Japan's Tokyo Steel Raises Scrap Purchase Price by USD 5/MT
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After keeping domestic scrap purchase prices unchanged for a month, Tokyo Steel has raised scrap purchase prices further by USD 4.5/MT (JPY 500) at all its works with effect from tomorrow (13th Jan).
Japan's leading EAF steel producer - Tokyo Steel has lifted domestic scrap purchase prices after keeping prices unchanged for almost a one months' time since last price revision done on 13th Dec'17. As per latest price circular, scrap buying prices have lifted further by JPY 500/MT (USD 4.5) at all its works which would be effective from tomorrow (i.e. 13th Jan'18) for all grades of scrap at all five works in Japan.
Now H2 scrap fetches JPY 37,500/MT (USD 337) at largest work in central Japan-Tahara. While the same grade fetches JPY 36,500/MT (USD 328) at Utsunomiya works in north Japan, H2 bids are placed at JPY 36,000/MT(USD 323) for Okayama and Kyushu works in west Japan while for its Takamatsu Steel Center company keeps bids at JPY 35,500/MT (USD 319).
Japanese H2 scrap reference prices now hiked around to JPY 37,000/MT (USD 332), FoB Japan while for New Cutting (Press) scrap to around JPY 39,000/MT (USD 350), FoB Japan.
Japan's monthly ferrous scrap export tender - Kanto Tetsugen has recorded highest bids in last seven years for Jan'18 since Feb'11. Bids placed for H2 scrap through this tender have increased by USD 15/MT M-o-M to JPY 37,800/MT FAS (USD 340) in Jan'18 against JPY 36,126/MT FAS (USD 325) awarded in Dec'17. Following which Tokyo steel could have raised its domestic scrap purchase bids.
Recently many of the South Korean steel mills also have raised domestic scrap purchase prices around KRW 10,000/MT (USD 9.3) in order to fetch higher volumes. Market participants are expecting Japanese scrap prices to remain strong till the end of Jan'18 amid winters.
Tokyo Steel's scrap purchase prices with effective from 13 Jan'18 -
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 37,500 | 36,000 | 36,000 | 36,500 | 35,500 |
| First Grade | 37,000 | 35,500 | 35,500 | 36,500 | 35,000 |
| Second Grade | 35,500 | 34,000 | 34,000 | 35,000 | 33,500 |
| New Cutting Press A | 41,000 | 38,000 | 38,000 | 38,000 | 37,500 |
| Shredder A | 38,000 | 36,500 | 36,500 | 37,000 | 36,000 |
| Shredder C | 37,500 | 36,000 | 36,000 | 36,500 | 35,500 |
Prices in Japanese Yen/MT for transport on land (Exchange Rate USD 1 = JPY 111.3)
Source: Tokyo Steel Reports
