Japan: Tokyo Steel's 3rd Price Hike for Scrap Purchase in March
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Tokyo Steel hiked scrap prices further by JPY 500/MT (USD 5) today at all works except Utsunomiya
As per new price circular released, Japan's leading EAF steel mini-mill - Tokyo Steel has hiked domestic scrap purchase price further by JPY 500/MT (USD 5) at all works, except Utsunomiya in Kanto region effective for all grades from tomorrow (09th Mar'19).
The company will pay JPY 35,000/MT (USD 315) for H2 scrap delivered to Utsunomiya plant situated in the Kanto region. While revised H2 price stands JPY 34,500/MT at the largest plant Tahara in the central area. In last two months' period prices have been increased successively by a total JPY 4,500/MT (USD 41) at Tahara and Utsunomiya plants while JPY 5,000/MT (USD 45) at Okayama works against that of price revision made on 8th Jan'19.
Market awaits Kanto Tender scheduled on 12th March - Japan's monthly scrap export Kanto tender is scheduled on 12th Mar'19. Market participants are waiting for its result to have more clarity and expect a sharp rise in bids this month against Feb'19.
The average H2 offers assessed in the range JPY 34,000-34,500/MT (USD 307-311), FoB Tokyo and collection rates in the Gulf region remained in the range JPY 33,000-34,000/MT. while Japanese yen has recovered slightly as USD/JPY rate stands at 111 today against that of 111.8 a week earlier.
Tokyo Steel's scrap purchase price effective from 09th Mar'19 -
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class (H2) | 34,500 | 32,500 | 35,000 | 35,000 | 30,500 |
| First Grade | 34,000 | 32,000 | 34,500 | 35,000 | 30,000 |
| Second Grade | 32,500 | 30,500 | 33,000 | 33,500 | 28,500 |
| New Cutting Press A | 39,500 | 34,500 | 37,000 | 38,500 | 32,500 |
| Shredder A | 36,000 | 33,000 | 35,500 | 35,500 | 31,000 |
| Shredder C | 35,500 | 32,500 | 35,000 | 35,000 | 30,500 |
Prices in Japanese Yen/MT for transport on land,
Source: Tokyo Steel Reports
South Korea's Dongkuk Steel books US bulk scrap cargo - As per SteelDaily's report, South Korea's one of the leading steelmakers Dongkuk Steel has recently signed a bulk cargo contract with US leading supplier Schneider for equivalent HMS 1 at around USD 338/MT, CFR South Korea. Previously, Dongkuk had concluded US bulk scrap deal at around USD 310/MT, CFR in Jan'19. However, the largest importer Hyundai Steel neither presented open bids for Japanese scrap nor concluded any US bulk deal since almost a months' time amid high inventories.
