Tokyo Steel lifts scrap prices further on tight supply

  • Tuesday, June 16, 2020
  • Source:ferro-alloys.com

  • Keywords:Tokyo Steel scrap prices tight supply
[Fellow]Japan's Tokyo Steel announced its sixth increase for ferrous scrap prices this month, effective on 13 June, as its previous rises failed to boost scrap flow to some mills.
 

[Ferro-Alloys.com

Japan's Tokyo Steel announced its sixth increase for ferrous scrap prices this month, effective on 13 June, as its previous rises failed to boost scrap flow to some mills.
 
The firm will raise scrap collection prices for all scrap grades by another 500 yen/t ($4.66/t) for Okayama and Takamatsu plants and ¥1,000/t for Utsunomiya plant. It will also increase shindachi grade scrap prices by ¥500/t for its Tahara plant, while keeping prices for other grade flat.
 
H2 scrap is now priced at ¥22,500/t delivered to Tahara plant and ¥25,000/t delivered to Utsunomiya plant, up by ¥1,000/t and ¥3,500/t on the week, respectively. The price jump at Utsunomiya plant reflects that supply is tightest in the Kanto region.
 
The fas Tokyo Bay H2 price rose further this week, rising to ¥26,750/t today from ¥25,000/t at the end of last week. Prices for HS and shindachi were ¥28,500/t and ¥27,500/t fas Tokyo Bay, respectively.
 
Tokyo Steel's price movements were followed closely by most Japanese mills in order to maintain scrap flow. Mills in the Kanto region are paying prices that broadly matched dockside prices, which are almost at the breakeven levels for most Japanese electric arc furnace mills. The Japanese domestic SD295A rebar price was unchanged at ¥55,000/t. Many market participants expect steelmakers to raise rebar sales price next week.
 
Domestic suppliers started to deliver more scrap to mills. A few mills that have received sufficient scrap were heard to have paused scrap collection.
 
Offers from domestic suppliers were still limited and at a high price level as they are waiting for the price to rise further, with almost no new export contracts from the beginning of June, a Japanese trader said. Most overseas buyers kept indicative price levels at around ¥26,000/t fob, but exporters found it not workable at the current dockside prices. Buyers will likely wait for more days to see if suppliers will lower workable levels.
 
Source: Argusmedia

 

  • [Editor:kangmingfei]

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