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Japan's Tokyo Steel Scrap Purchase Price in Kanto Hit 6-Month Low

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Melting Scrap
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15 Nov 2018, 17:03 IST
Japan's Tokyo Steel Scrap Purchase Price in Kanto Hit 6-Month Low

Japan's leading EAF steel mini-mill - Tokyo Steel slashed its scrap purchase prices fifth time in November. As per new price circular released, the steel manufacturer has reduced scrap prices by JPY 500/MT (USD 4) at Utsunomiya, Tahara and Okayama plants and by JPY 1000/MT (USD 9) at Kyushu works and Takamatsu Steel center respectively. New prices shall be effective from tomorrow.

Tokyo steel's H2 prices stand at JPY 34,500/MT (USD 304) for Kyushu plant and at JPY 33,500/MT for Okayama works in western Japan. Prices stand at JPY 33,000/MT for largest plant Tahara in central Japan. Bids for the same grade noted at JPY 32,500/MT for its Takamatsu steel center and at JPY 34,000/MT for Utsunomiya plant.

Notably, prices at its Kanto region based Utsunomiya plant have hit last 6 months low as earlier to this, prices dropped to JPY 34,000/MT levels for H2 during mid of May'18, and scrap prices at Tahara plant hit last one year low with recent price cut.

Many of the Japanese EAF steelmakers observed rising profits during this financial year (Apr-Sept'18) majorly due to increased spread between ferrous scrap prices and finish steel selling prices.

Japanese scrap export offers have also come under pressure. H2 export offers stand between JPY 33,500-34,500/MT (USD 295-304) , FoB and H2 gulf prices at JPY 31,000-31,500/MT levels.

However, JPY appreciated back against USD after hitting record low of 114 in couple of days, USD/JPY rate stands 113.3 levels today as against 114.1 on 12th Nov'18.

Tokyo Steel's scrap purchase prices effective from 16th Nov'18 -

Scrap Grade Name of Work of Tokyo Steel
Tahara Plant Okayama Plant Kyushu Factory Utsunomiya Factory Takamatsu Steel Center
Special Class (H2) 33,000 33,500 34,500 34,000 32,500
First Grade 32,500 33,000 34,000 34,000 32,000
Second Grade 31,000 31,500 32,500 32,500 30,500
New Cutting Press A 38,000 35,500 36,500 37,500 34,500
Shredder A 34,000 34,000 35,000 34,500 33,000
Shredder C 33,500 33,500 34,500 34,000 32,500

Prices in Japanese Yen/MT for transport on land,
Source: Tokyo Steel Reports

South Korean EAF steelmakers observe widened roll margin - As per Steeldaily's report, the average roll margin between steel scrap and finish steel products of leading EAF steelmakers in South Korea has widened to high levels. The average purchasing price of Heavy A scrap by EAF mills in the southern area fell to KRW 385,000/MT (USD 340) on 14th Nov'18. On the other hand, the average rebar selling price has risen to around KRW 720,000/MT (USD 636) due to a lack of supply and EAF mill's strong commitment to improve portability.

Roll margin between steel rebar and steel scrap prices, has widened to KRW 335,000/MT (USD 296) which is close to the level of May'17 when the roll margin was the largest at KRW 345,000/MT. Following which profits of major EAF mills seem rising and local scrap prices are falling. However, their profits remain lower against 2017 when the roll margin was at a similar level because of the high prices of electrodes and Ferro alloys.


Source: Steel Daily

15 Nov 2018, 17:03 IST

 

 

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