Japan: Tokyo Steel Raises Scrap Purchase Prices Twice in a Week's Time
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Japan’s leading EAF steel mini-mill - Tokyo Steel has announced two successive price hikes in its scrap purchase in last couple of days. As per new price circular released today, the steel manufacturer has raised prices by JPY 500/MT (USD 5) at all its plants except at Utsunomiya as against last set of prices. The revised prices shall be effective from tomorrow i.e. 15 Sept’18.
Tokyo Steel fetches H2 scrap at JPY 37,000/MT (USD 331) for its Kanto region based works i.e. Utsunomiya. The prices for the largest work in central Japan-Tahara and at Kyushu plant have come in line with Utsunomiya plant at JPY 37,000/MT now. Bids for the same grade is at JPY 36,500/MT at Okayama works in Western Japan while for its Takamatsu steel center company kept bids at JPY 36,000/MT in Southern Japan.
Earlier to this 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.
In last two price hikes the company has kept prices unchanged at Utsunomiya plant located in Kanto region as they were already high as compared with other plants.
Tokyo Steel’s scrap purchase prices effective from 15 Sept’18 -
| Scrap Grade | Name of Work of Tokyo Steel | ||||
| Tahara Plant | Okayama Plant | Kyushu Factory | Utsunomiya Factory | Takamatsu Steel Center | |
| Special Class | 37,000 | 36,500 | 37,000 | 37,000 | 36,000 |
| First Grade | 36,500 | 36,000 | 36,500 | 37,000 | 35,500 |
| Second Grade | 35,000 | 34,500 | 35,000 | 35,500 | 34,000 |
| New Cutting Press A | 42,000 | 38,500 | 39,000 | 40,500 | 38,000 |
| Shredder A | 37,500 | 37,000 | 37,500 | 37,500 | 36,500 |
| Shredder C | 37,000 | 36,500 | 37,000 | 37,000 | 36,000 |
Prices in Japanese Yen/MT for transport on land
Source: Tokyo Steel Reports
Market witnesses supply tightness for high grade scrap in Japan - According to reports, in the Kansai area, there is a sense of tightness in high grade scrap but availability of H2 is good at present. However, a cautious buying attitude and ‘wait and watch’ mode is likely to continue in Kansai, Okayama and Osaka region on no strong reason behind recent price hike. While demand may turn strong in the second half of September on pick up in construction activities.
