Tokyo Steel Manufacturing will cut its ferrous scrap buying prices by Yen 500/mt ($4.6/mt) across all its five steelworks, for deliveries beginning Thursday, the company said Wednesday, October 8.
The new prices for H2 grade scrap will be Yen 33,000/mt ($304.9/mt) at its Utsunomiya works in northern Kanto and Kyushu works in western Japan, while prices at Okayama in western Japan and Takamatsu Steel Center in Shikoku Island will be Yen 31,500/mt.
The company's H2 grade buying price at Tahara works in central Japan will be Yen 32,500/mt.
Tokyo Steel's procurement officials could not be reached for comment, but a Tokyo-based trader said scrap deliveries to mini-mills have been very smooth and some mills have stopped receiving material.
This has "led Tokyo Steel to receive more scrap, [so] the company has decided to cut prices further," he said.
Tokyo Steel last cut scrap buying prices by Yen 500/mt across the five steelworks, for arrivals beginning October 3, Platts previously reported.
Referring to Thursday's scheduled tender for H2 grade scrap for export called by Kanto-based scrap dealers, another Tokyo-based scrap trader said: "We believe the winning bid in the next auction will be Yen 1,000-2,000/mt lower than the winning bids in the previous auction."
Lower scrap export prices from the auction will ensure that domestic scrap availability remains high and deliveries smooth to Japanese mini-mills, including Tokyo Steel.
The highest winning bid in last month's auction was Yen 33,850/mt ($312.8/mt) free alongside ship, Yen 200/mt higher than the winning bid in the August auction.
Source: Platts
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