After witnessing first price cut in last two months’ time at Utsunomiya works yesterday, Tokyo Steel has announced another price cut by USD 5/MT today over fallen import bids from South Korean steelmakers for Japanese scrap
Japan’s leading EAF steel mini-mill – Tokyo Steel has announced a second successive price cut for domestic scrap purchase in last two days. As per new price circular released, the steel manufacturer has cut prices for all grades of scrap by JPY 500/MT (USD 5) at Utsunomiya work which is located in the Kanto region in north Japan. Revised prices shall be effective from tomorrow i.e. 16th Jun’18.
Yesterday, Tokyo Steel cut scrap purchase price after two months’ time in Japan in which prices slashed down by JPY 500/MT(USD 5) for low and medium grades except for high-grade scrap.
Now H2 scrap fetches at JPY 36,000/MT (USD 326) 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.
Hyundai Steel has lowered bids for Japanese H2 yesterday by Yen 500/MT (USD 5). Hyundai has received a decent response to the bid which was assessed at Yen 33,500/MT (USD 303) against its last bid made in the beginning of June at Yen 34,000/MT.
Following declining export offers from Japanese suppliers’ domestic scrap prices are moving down in Kanto region. Now average H2 scrap export offers from suppliers assessed in the range of 33,500-35,000/MT (USD 303-317) FoB for Kanto region in Japan.
Japanese Yen depreciated by around 1% D-o-D, exchange rate USD/JPY stood at high 110.8 today as against Yesterdays’ low at 109.9.
Tokyo Steel’s scrap purchase prices effective from 16th 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||38,500||33,000|
Prices in Japanese Yen/MT for transport on land
Source: Tokyo Steel Reports
East Asian scrap prices declined further – A Hong Kong based supplier sold containerized 3,000 MT HMS 1&2 (80:20) at USD 344/MT, CFR Vietnam to northern Vietnamese buyer. Vietnamese buyers are shifting towards Hong Kang and Japan as recently Chinese Govt. cracked down smuggling of scrap and it has placed stricter regulations on scrap export. Also, South Korean mills have slashed domestic scrap purchase prices amid considerable inventories.