Japan: Tokyo Steel Scrap Price at Utsunomiya Hit Over 1 Year Low

Steelmaker has lowered scrap purchase price further by JPY 500/MT today as Japanese domestic scrap prices continue downtrend

As per new price circular released, Japan’s leading EAF steel mini-mill - Tokyo Steel has lowered the domestic scrap purchase price by JPY 500/MT (USD 5) at all five works in Japan. New prices for all grades shall be effective from 18th Apr'19. According to prices maintained with SteelMint, H2 purchase price at Utsunomiya plant has hit the lowest price of over 1 year and 6 months at JPY 30,500/MT (USD 272).

This is the second price reduction made by Tokyo Steel since the opening of this week. While the company observes sixth successive price cut so far in Apr'19.

With a recent price cut, the company will pay JPY 32,000/MT (USD 280) at Tahara in central Japan and Kyushu works in the Western region. While JPY 30,500/MT (USD 272) for H2 delivered to Utsunomiya plant in the Kanto region, JPY 31,000/MT for Okayama plant and JPY 29,500/MT at Takamatsu steel center.

Tokyo steel has lowered price for high-grade scrap (New breaking press A and Shin Taichibara) successively by JPY 1000/MT to JPY 32,500/MT at Utsunomiya works. The price gap between high grade and low-grade scrap (H2) has narrowed to just JPY 3,000/MT now amid low demand for high-grade scrap in the market.

Participants anticipate that Japanese scrap prices have already been hit bottom and price cut seems limited further.

South Korean steelmakers continue bulk scrap cargo bookings - According to SteelDaily's report, South Korean Steel manufacturer Dongkuk steel has booked a Russian bulk scrap cargo of 20,000 MT at USD 321/MT, CFR South Korea, prices fell sharply against the last Russian contract at USD 341/MT, CFR. While Hyundai Steel and Donkuk steel booked bulk cargoes for Jun-Jul'19 shipments from US at around USD 330/MT, CFR last week.