Author: Paul Ploumis21 May 2015 Last updated at 06:35:12 GMT
TOKYO (Scrap Monster): The country’s top electric steel producer- Tokyo Steel Manufacturing has increased purchasing prices for all grades of ferrous scrap delivered to its entire works. According to company website, the purchasing prices are being increased by Yen 500 per mt effective Wednesday.
The change in scrap purchasing prices is the first since April 21st, when Tokyo Steel had increased scrap buying prices for all grades delivered at Utsunomiya works and for turning grade delivered to Takamatsu Steel Center.
The scrap purchasing prices at Okayama works in Western Japan will be increased by ¥ 500/ton to ¥ 24,000/ton and those in Kyushu works in Western Japan will be ¥ 24,500/ton.
Tokyo Steel’s scrap purchasing prices in Tahara works in Central Japan will be ¥ 25,000/ton, while those in Takamatsu steel center on Shikoku Island will be hiked by ¥ 500/ton to ¥ 23,500/ton.
The scrap purchasing prices at Utsunomiya works in north of Tokyo will be now ¥ 26,000/ton ($214.90/ton).
Meantime, some mini-mills in the Northern region including JFE Bars & Shapes and Itoh Iron & Steel commented that Tokyo Steel’s decision to increase scrap purchasing prices came as a surprise. In fact, they had cut their scrap buying prices by ¥ 500/ton effective Monday on account of more than sufficient inventory levels.
According to traders, Tokyo Steel’s decision is on the back of rising export prices of Japanese scrap. South Korean mills are believed to have made bookings for Japanese scrap at increased prices. South Korean Dongkuk Steel Mill booked Japanese H2 grade scrap at ¥ 25,500/ton FOB, ¥ 300/ton higher when compared with two-week prior level.