Major Japanese EAF-based steel producer Tokyo Steel has announced a second scrap purchase price cut this month, reducing scrap purchase prices for all of its five plants by JPY 500/mt ($4.7/mt) on October 8. As a result, the lowest purchase prices have been announced for Takamatsu at JPY 19,500/mt ($182/mt) delivered and for Okayama at JPY 20,500/mt ($191/mt) delivered. Prices for the other three assets have been set at JPY 22,500-23,000/mt ($210-215/mt) delivered. The new prices will be effective from October 9.
At the same time, ex-Japan export offers are at JPY 23,000-24,000/mt ($215-224/mt) FOB, down JPY 500/mt ($4.7/mt) from early October. Contracts close to the lower end of the range are possible even despite the overall expectations that scrap prices in Asia will stay firm in the near future.
$1 = JPY 107
