After witnessing a marginal drop in bids for Kanto Tensugen tender, Tokyo Steel has today announced its first price cut in last two months’ time for the purchase of domestic scrap at Utsunomiya work in Kanto region. Prices remain unchanged at its other four works.
Japan’s leading EAF steel mini-mill – Tokyo Steel has announced a price cut for domestic scrap purchase after witnessing six price hikes in last two months at Utsunomiya work which is located in the Kanto region in north Japan. As per new price circular released, the steel manufacturer has cut prices by JPY 500/MT (USD 5) for low and medium grades except for high-grade scrap. Revised prices shall be effective from tomorrow i.e. 15th Jun’18.
Tokyo Steel has cut prices after about 2-months time. Prior to this, the steelmaker reduced scrap purchase prices by Yen 500/MT on 12 Apr’18.
Now H2 scrap fetches at JPY 36,500/MT (USD 332) for Utsunomiya and JPY 35,500/MT at Tahara works. While prices for all grades of scrap remained same as the earlier for South-Western works like Okayama plant, Kyushu factory and Takamatsu Steel center in Japan. The price gap between Kanto region’s Utsunomiya plant and Western Okayama plant shorted to JPY 5000/MT (USD 45) for H2 in Japan.
However, prices for 3 high grades of scrap i.e. New Roses, New Cutting Press A and New Cutting Press B remain unchanged at JPY 39,000/MT (USD 360) at Utsunomiya works.
Japan’s H2 scrap export offers from suppliers assessed in the range of 34,500-35,500/MT (USD 314-323) FoB for Kanto region while H2 prices stood at around JPY 33,500-34,500/MT (USD 305-314) for Gulf region in Japan.
Tokyo Steel’s scrap purchase prices effective from 15th Jun’18 –
|Scrap Grade||Name of Work of Tokyo Steel|
|Tahara Plant||Okayama Plant||Kyushu Factory||Utsunomiya Factory||Takamatsu Steel Center|
|New Cutting Press A||40,500||33,500||34,000||39,000||33,000|
Prices in Japanese Yen/MT for transport on land
Source: Tokyo Steel Reports
Monthly scrap export tender for June fetches bid down by USD 2/MT – Japan’s monthly ferrous scrap export tender ‘Kanto Tetsugen’ for June’18 has recorded average bids edge down M-o-M, following which increased domestic scrap prices in Japan came under pressure. The average bids for June’18 recorded at JPY 34,000/MT (USD 307), FAS as against the average bids fetched at JPY 34,245/MT (USD 309) in May’18. The auction attracted 17 bids for total 110,200 MT which was down by 9,800 MT against last month. Monthly around 20,000 MT H2 get auctioned through this tender, however, export volumes fell this month amid low demand for low-grade scrap from importers.
Japan’s domestic scrap indices flat – According to price indices reported by Japan Iron and Steel Association, domestic scrap prices have remained flat for the second week of June in Japan. The average price index for H2 scrap remained at JPY 33,600/MT (USD 306) stable on W-o-W basis. For Kanto region, H2 assessed at JPY 35,300/MT and for central region price index remained at JPY 32,000/MT respectively.