According to Mining News Pro -Japan’s leading EAF steel mini-mill - Tokyo Steel slashed its scrap purchase prices again effective from tomorrow (10th Nov). The steelmaker has observed four successive price cuts in last 10 days’ time in which prices have reduced by JPY 2500-3500/MT (USD 23-32/MT) from a temporary peak achieved during Oct’18.
Amid weakening Japanese scrap exports and lower purchases from importers like South Korea and Vietnam, domestic scrap prices in Japan have started falling down sharply. Also, monthly export tender ‘Kanto Tetsugen’ fetched bids down USD 9/MT for Nov’18.
As per new price circular released, the steel manufacturer has cut prices by JPY 1000/MT (USD 9) at all five works. However, earlier to this, Tokyo slashed prices on 7th Nov by JPY 1000/MT at its three works i.e. Tahara, Okayama and Takamatsu Steel Centre while by JPY 500/MT at Kyushu and Utsunimiya works in Japan.
Tokyo steel’s H2 price stands at JPY 36,500/MT (USD 320) for Kyushu plant and at JPY 35,000/MT for Okayama works in western Japan while prices stand at JPY 34,500/MT for largest plant Tahara in central Japan. Bids for the same grade noted at JPY 34,500/MT for its Takamatsu steel center and at JPY 36,500/MT for Utsunomiya plant in the Kanto region respectively.
As per prices maintained with SteelMint, Tokyo`s scrap purchase prices have fallen to 4 month low, as Utsunomiya works recorded JPY 35,500/MT levels for H2 last on 19th Jul`18.
As per SteelDaily`s report, Tokyo Steel booked 5000 MT of Russian scrap for its Kyushu works after procurement of 3000 MT of South Korean scrap last week for its urgent need.
Tokyo Steel’s scrap purchase prices effective from 10th Nov’18 -
| Scrap Grade | NameofWork ofTokyoSteel |
| TaharaPlant | OkayamaPlant | KyushuFactory | Utsunomiya Factory | Takamatsu Steel Center |
| SpecialClass (H2) | 34,500 | 35,000 | 36,500 | 35,500 | 34,500 |
| FirstGrade | 34,000 | 34,500 | 36,000 | 35,500 | 34,000 |
| SecondGrade | 32,500 | 33,000 | 34,500 | 34,000 | 32,500 |
| NewCuttingPressA | 39,500 | 37,000 | 38,500 | 39,000 | 36,500 |
| ShredderA | 35,500 | 35,500 | 37,000 | 36,000 | 35,000 |
| ShredderC | 35,000 | 35,000 | 36,500 | 35,500 | 34,500 |
Prices in Japanese Yen/MT for transport on land,
Source: Tokyo Steel Reports
Hyundai Steel less likely to resume bids for Japanese scrap shortly - South Korean leading steelmaker Hyundai Steel is likely to suspend bids for Japanese scrap till Jan’19. Since late August, the steelmaker is skipping bidding for Japanese scrap. Its purchase requirement for H2 hasn’t recovered yet amid high inventories.
Hyundai Steel booked significant volumes from USA in bulk cargoes amid high Japanese prices, Japanese joint yards are continuing to supply in the spot market while South Korean domestic scrap circulation is increasing this situation has led to ample scrap inventories and contracts in hand thus, steelmaker seems less likely to place bids for H2 till Jan’18.
