TOKYO Tokyo Steel
Manufacturing Co. Ltd. has raised the scrap purchasing price at
one of its plants by 1,000 yen ($12.50) per tonne, suggesting
that Japanese scrap prices might finally have bottomed out
after falling to multiyear lows over the past few months.
Although the increase only
affects deliveries to the companys Utsunomiya plant north
of Tokyo, it is the steelmakers first scrap price
increase since late August.
Since then, Japans largest
electric-arc furnace operator and effective benchmark price
setter has slashed its buying prices by 7,000 yen ($88) per
tonne, taking tags to the lowest levels in more than three
amm.com, Oct. 26).
The 1,000-yen-per-tonne increase
raises the steelmakers scrap purchase price at its
Utsunomiya Works to 23,500 yen ($295) per tonne. Purchase
prices for deliveries to its other four works continue to range
between 21,500 and 22,500 yen ($270 to $282) per tonne.
Market observers told
AMM sister publication Steel First that while
scrap prices remain subdued in the western part of the country,
those in the Tokyo area recently received some upward pressure
as mini-mills in the countrys east ramped up steel
The regions 18 EF
operators are expected to increase production to 439,000 tonnes
this month, up almost 3 percent from October, which is expected
to drive a 5.5-percent rise in scrap purchases.
The rise in scrap prices
wont be welcomed by Tokyo Steel, which is facing sluggish
demand that is preventing it from increasing its selling
Last month, the company warned
that it would post a 15-billion-yen ($188.36-million) operating
loss in its fiscal year ending March 31, 2013, on the back of a
16.7-percent decline in sales revenue.
A version of this article was first
published by AMM sister publication Steel