Posted on 11 Nov 2016
Tokyo Steel Manufacturing, Japan’s leading electric furnace steelmaker, has decided to increase its scrap buying prices again, by Yen 1,000-1,500/mt ($9-$14/mt) to its domestic buying prices, for all grades of scrap delivered to its stockyard and steelworks, effective Friday.
The company will pay Yen 22,500/mt, Yen 1,500/mt higher, for H2 material delivered to its Utsunomiya works, north of Tokyo; Yen 22,000/mt, Yen 1,000/mt higher, for material delivered to Tahara works in central Japan; Yen 21,500/mt, Yen 1,000/mt higher, for material delivered to Okayama and Kyushu works in western Japan; and Yen 21,000/mt, Yen 1,000/mt higher, for H2 material delivered to Takamatsu Service Center.
The latest increase was Tokyo Steel’s second hike during this week.
It follows the Yen 1,000-1,500/mt price rise effective November 8, which was also the first price movement after nearly two months of holding prices.
Tokyo Steel procurement officials were unavailable for comment Thursday, but scrap traders in Tokyo said the increase was a result of scrap dealers holding scrap out of anticipation of price rise.
“Especially after yesterday’s scrap tender, anticipation of price rise is more expected in the market,” a Tokyo-based scrap trader said.
The Kanto Tetsugen monthly tender held by scrap dealers around Tokyo Wednesday attracted a highest bid of Yen 23,360/mt FAS for H2 material, Yen 3,940/mt higher than last month’s highest bid. The parcel will be shipped by end-December, as reported.
S&P Global Platts assessed the H2 scrap export price at Yen 22,000-22,500/mt ($215-$220/mt) FOB Tokyo Bay Wednesday, up Yen 1,500/mt from last week’s assessment at Yen 20,500-21,000/mt FOB, as reported.
