Japan: Tokyo Steel Cuts Scrap Purchase Price by JPY 500 (USD 5)
As per new price circular released, Japan’s leading EAF mini-mill - Tokyo Steel has again lowered its scrap purchase price by JPY 500/MT (USD 5) at 4 out of its 5 plants today, except for Kyushu works. This comes as the 3rd price lowering by the company this month, while the new prices for all grades shall be effective from tomorrow (11th Sep’19)
After the said price cut, the company will pay JPY 24,000/MT (USD 224) for H2 scrap delivered at Tahara plant in Central Japan and JPY 24,500/MT (USD 228) for H2 delivery to Utsunomiya plant in Kanto region. For H2 delivered to Okayama plant and Takamatsu steel centre, the new prices stand at JPY 22,500/MT (USD 210), ) and JPY 21,000/MT (USD 196) respectively, while price for Kyushu works in the western region remains unchanged at JPY 24,000/MT (USD 224)
After implementing 4 price cuts in Aug’19, the company has further reduced its purchase bids by JPY 1000-1500/MT across its 5 plants in the 3 price revisions observed in Sep’19. Following the cuts by Tokyo Steel, several other Japanese EAF Steelmakers in Central District area too, have lowered their purchase price by JPY 500-1000/MT as the market sentiments remained negative, on weak domestic and global demand.
Amid continuous fall in domestic prices, the export offers to overseas buyers have also dropped recently. While major South Korean steelmakers had cut their bids for Japanese scrap last week with anticipation of further correction this month, it was also reported that offers to South East Asian markets like Vietnam have dropped.
The market is awaiting the upcoming Kanto-Tetsugen export tender’s result scheduled for tomorrow, amid hearsay from some sources about its probable deferral, on account of a sharp decline in prices.
source: SteelMint
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