According to Mining News Pro -Japan’s leading EAF steel mini-mill - Tokyo Steel has observed its seventh successive price revision in its scrap purchase prices until now in Sept’18. As per new price circular released, the steel manufacturer has raised prices by JPY 500/MT (USD 5) at four of its plants in Japan (namely Tahara, Okayama, Kyushu and Takamatsu Steel Centre) amid tight supply. While prices at the Kanto region based works i.e. Utsunomiya kept unchanged as against last set of prices. The revised prices shall be effective from tomorrow i.e. 27 Sept’18.
Tokyo Steel’s H2 scrap prices stand at JPY 38,500/MT (USD 341) for Western Japan plants i.e. Okayama and Kyushu which have already surpassed prices at two major plants Tahara and Utsunomiya. Prices at largest plant Tahara in central Japan and Takamatsu steel center in Southern Japan now stand at JPY 38,000/MT while bids for the same grade remained at JPY 37,500/MT for its Utsunomiya plant.
Japanese market observed three days of consecutive Autumnal holidays during 22nd to 24th Sept. Usually EAF steelmakers turn active to increase the production by intensive operation as autumn is high steel demand season. In addition, the cost of production has risen sharply due to various price hikes for electricity, fuel and fare along with rising electrode, refractories and Ferroalloy prices.
Tokyo Steel’s scrap purchase prices effective from 27 Sept’18 -
| Scrap Grade | NameofWork ofTokyoSteel |
| TaharaPlant | OkayamaPlant | KyushuFactory | Utsunomiya Factory | Takamatsu Steel Center |
| SpecialClass | 38,000 | 38,500 | 38,500 | 37,500 | 38,000 |
| FirstGrade | 37,500 | 38,000 | 38,000 | 37,500 | 37,500 |
| SecondGrade | 36,000 | 36,500 | 36,500 | 36,000 | 36,000 |
| New Cutting Press A | 43,000 | 40,500 | 40,500 | 41,000 | 40,000 |
| ShredderA | 38,500 | 39,000 | 39,000 | 38,000 | 38,500 |
| ShredderC | 38,000 | 38,500 | 38,500 | 37,500 | 38,000 |
Prices in Japanese Yen/MT for transport on land
Source: Tokyo Steel Reports
Japanese scrap supply tightened further on active domestic demand - The purchase price of H2 from EAF steelmakers remained in the range of JPY 36,500-37,500/MT in Japan. According to reports, South Korean buyers are shifting to purchase only high grade scrap, and the exports of medium grade scrap like H2 has turned difficult. South Korean mills like Hyundai Steel have either booked bulk scrap cargoes from US or are procuring domestic scrap from South Korea. Meanwhile, due to the influence of the typhoon cyclone passing in the Kanto area, shipments that were behind schedule were concentrated although domestic demand remains strong.
Following Tokyo steel’s successive price rise, Chubu Electric Furnace has also rose scrap procurement prices. The company has to meet up considerable volumes of automotive parts for export, also an increase in construction investment is expected. Following this it has increased production actively.
