According to Mining News Pro -Japan’s leading EAF steel mini-mill - Tokyo Steel has observed its fifth 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 its three major plants Tahara, Utsunomiya and Kyushu while by 1000/MT (USD 9) at its remaining two plants i.e. Okayama and Takamatsu steel center as against last set of prices. The revised prices shall be effective from tomorrow i.e. 19 Sept’18.
As per latest recent hike, Tokyo Steel’s H2 scrap prices have come in line at four of its factories in Japan. Prices assessed at JPY 37,500/MT (USD 335) for its Kanto region based works i.e. Utsunomiya, the largest work in central Japan-Tahara, Kyushu and Okayama plants in Western Japan. While bids for the same grade is at JPY 37,000/MT for its Takamatsu steel center of company in Southern Japan.
Last week, on 13th Sept, the steelmaker raised prices at Okayama and Takamatsu steel center by JPY 500/MT (USD 5) keeping prices at other three plants unchanged. While on 15th Sept, it raised prices again by JPY 500/MT (USD 5) at all its plants except at Utsunomiya.
Purchase price at Tahara plant climbed last 6 months high while prices at Okayama and Kyushu plants have reached almost last 18 months high in Japan on tightened availability and increased domestic demand for Olympic construction activities.
Tokyo Steel’s scrap purchase prices effective from 19 Sept’18 -
| Scrap Grade | NameofWork ofTokyoSteel |
| TaharaPlant | OkayamaPlant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center |
| SpecialClass | 37,500 | 37,500 | 37,500 | 37,500 | 37,000 |
| FirstGrade | 37,000 | 37,000 | 37,000 | 37,500 | 36,500 |
| SecondGrade | 35,500 | 35,500 | 35,500 | 36,000 | 35,000 |
| New Cutting Press A | 42,500 | 39,500 | 39,500 | 41,000 | 39,000 |
| ShredderA | 38,000 | 38,000 | 38,000 | 38,000 | 37,500 |
| ShredderC | 37,500 | 37,500 | 37,500 | 37,500 | 37,000 |
Prices in Japanese Yen/MT for transport on land
Source: Tokyo Steel Reports
Japanese scrap market continues to remain strong despite Korean steel mills have reduced their import volumes amid rising domestic scrap inventories. Market expects prices to come down over less bookings from South Korean mills. However Japan`s strong domestic market is supporting sentiments.
South Korean steelmakers witness sharp rise in scrap inventories – According to reports, South Korean demand for Japanese scrap has remained very sluggish as 7 major steelmakers have witnessed sharply risen inventories climbing above 1 MnT, up 2.8% W-o-W this week. Following which the country observed price cut by KRW 10,000-20,000/MT (USD 9-18) as purchases remained dull and distribution has increased now.
On the other hand, major steelmakers likely Hyundai and Dongkuk steel are less likely to resume back bidding for Japanese scrap shortly until prices drop down again.
