Mining News Pro - Amid increased restocking scrap activities and tightened supply in the domestic market, Japanese scrap prices have moved up further. Tokyo has observed 2nd successive price hike in a weeks’ period.
According to Mining News Pro - Japan’s leading EAF steel mini-mill - Tokyo Steel has announced third hike in its scrap purchase prices in August month. As per new price circular released, the steel manufacturer has raised prices by JPY 500/MT (USD 5) at its four plants against last set of prices except at the largest plant Tahara in central Japan. Revised prices shall be effective from tomorrow i.e. 22nd Aug’18.
Tokyo Steel fetches H2 scrap at JPY 37,500/MT (USD 341) for its Kanto region based works i.e. Utsunomiya and at JPY 36,500/MT for largest works in central Japan-Tahara. After this price hike, bids for the same grade has increased to JPY 36,000/MT levels at Kyushu plant and JPY 35,500/MT at Okayama works in Western Japan while for its Takamatsu steel center company keeps bids at JPY 35,000/MT in Southern Japan.
Earlier to this, on 18th August, Tokyo Steel increased prices by JPY 1000/MT at all plants and by JPY 1500/MT for 3 high grade plants at Utsunomiya works. After witnessing Obon holidays EAF steelmakers have resumed activities with increasing demand for restocking of scrap amid increasing operating hours.
H2 price gap between Okayama and Utsunomiya plant has remained stable at JPY 2,000/MT while it has widened to JPY 1000/MT in between prices at Tahara and Utsunomiya works.
The steelmaker has kept steel prices unchanged for September deliveries. This is for seventh consecutive month that prices have remained unchanged as earlier to this, it had raised prices by JPY 2000/MT for Feb deliveries.
Tokyo Steel’s scrap purchase prices effective from 22nd Aug’18 -
| Scrap Grade | NameofWork ofTokyoSteel |
| TaharaPlant | OkayamaPlant | KyushuFactory | Utsunomiya Factory | Takamatsu Steel Center |
| SpecialClass | 36,500 | 35,500 | 36,000 | 37,500 | 35,000 |
| FirstGrade | 36,000 | 35,000 | 35,500 | 37,500 | 34,500 |
| SecondGrade | 34,500 | 33,500 | 34,000 | 36,000 | 33,000 |
| New Cutting Press A | 41,500 | 37,500 | 38,000 | 41,000 | 37,000 |
| ShredderA | 37,000 | 36,000 | 36,500 | 38,000 | 35,500 |
| ShredderC | 36,500 | 35,500 | 36,000 | 37,500 | 35,000 |
Prices in Japanese Yen/MT for transport on land
Source: Tokyo Steel Reports
South Korean importers remain less interested for Japanese scrap – Major South Korean steelmakers like Hyundai and Dongkuk stood away from presenting bid for costlier Japanese scrap amid sharply declined global scrap prices. These steelmakers have raised prices for local scrap amid easier availability and considerable contracts in hand. Although export prices have remained at the firm levels, there is a possibility of driving of the export market with generation shortage of ferrous scrap in the domestic market in Japan.
