Japan: Tokyo Steel Raises Scrap Purchase Price After Almost 5 Months

The steelmaker has raised its domestic scrap purchase price by JPY 500/MT (USD 5) at Utsunomiya plant following an upturn in Japanese scrap price amid tight supply.

As per new price circular released, Japan’s leading EAF mini-mill - Tokyo Steel has raised domestic scrap purchase price by JPY 500/MT (USD 5) at its Utsunomiya works located in Kanto region. While prices remained unchanged at other four works. The new prices for all grades shall be effective from tomorrow (24th Jul'19).

After the price hike, the company will pay JPY 26,500/MT (USD 245) for H2 scrap delivered at Utusnomiya plant while H2 prices remained unchanged at JPY 26,000/MT (USD 240) for the largest plant, Tahara in the central region and JPY 25,500/MT (USD 236) for Okayama plant. For H2 delivered to Kyushu works in the western region and Takamatsu Steel Center, prices remained flat at JPY 25,000/MT and JPY 24,000/MT respectively.

The steelmaker has hiked scrap prices after almost 5 months when H2 at Utsunomiya recorded at JPY 35,000/MT on 6th Mar'19. It had remained silent for almost last 3 weeks to observe bottoming out of prices since the last price cut made on the 5th of July.

Tokyo Steel rolled over finished steel prices for August delivery - The company kept its finished steel prices unchanged for August deliveries. H shaped steel price stands at JPY 85,000/MT and HRC coils at JPY 69,000/MT unchanged against the last month. While deformed bars at JPY 64,000/MT and JPY 79,000/MT for Thick plates respectively.

Japanese domestic scrap prices have turned up after falling successively around USD 65 over the last 3 months and hitting more than 2 years low. Following Tokyo's lead, other EAF steelmakers in the Kanto region are expected to increase scrap purchase prices while export offers have already jumped in the range JPY 28,000-29,000/MT, FoB.