TOKYO Tokyo Steel Co.
Ltd. has raised its scrap purchase prices for a second time
within a week to the highest level since March 2012 in response
to a large jump in the latest export auction prices.
The Tokyo-based company,
Japans largest electric-arc furnace operator and
unofficial benchmark price-setter, has increased its buying
prices for shipments to all five of its works by 500 yen
($5.22) per tonne.
Prices for H2-grade scrap (a mix
of No. 1 and No. 2 heavy melt) are now at 34,500 yen ($360.23)
per tonne for arrivals at the companies Kyushu and Okayama
plants, 35,000 yen ($365.45) per tonne for arrivals at its
Tahara and Utsunomiya plants, and 33,500 yen ($349.79) per
tonne for those to its Takamatsu facility.
The increase was sparked by a 4-percent jump in the latest
export tender by Tokyo-area scrap dealers early during the week
of March 11, with the average winning bid for deliveries of
H2-grade scrap for April rising by 1,337 yen ($13.97) per tonne
month on month to 34,915 yen ($364.42) per tonne f.a.s. This
represents a more than 50-percent rise in Japanese export
prices for scrap over the past five months, putting export
prices at their highest level in more than a year.
A version of
this article was first published by AMM sister publication