TOKYO Tokyo Steel
Manufacturing Co. Ltd. has cut its ferrous scrap purchase
prices for the first time since late October, confirming signs
of a weakening price trend.
Japans largest mini-mill
operator and effective benchmark price-setter has reduced its
buying prices for deliveries of all grades of scrap to its
Tahara plant by 500 yen ($5.50) per tonne and deliveries to its
other four works by 1,000 yen ($11) per tonne.
The company is now paying 34,500
yen ($371) per tonne for deliveries to Tahara; 34,000 yen
($366) per tonne to its main Utsunomiya plant; 33,500 yen
($360) per tonne for those to its Okayama and Kyushu
facilities; and 32,500 yen ($349) per tonne for deliveries to
"The price cut by Tokyo Steel is
not so surprising, as scrap prices appear to have started to
weaken recently. Demand is not so strong," one trader told
AMM sister publication Steel First.
Tokyo Bay scrap prices
reportedly were down 500 yen last week to 33,500 to 36,000 yen
($360 to $387) per tonne f.a.s., depending on the grade, and
there also were reports that South Korean mills such as Hyundai
Steel Co. Ltd. and Posco Processing & Service Co. Ltd. were
reducing their buying prices.
Tokyo Steels purchasing
prices had increased as much as 12,000 yen ($129) per
tonnearound 50 percentsince early November, which
combined with lower product prices has taken a toll on the
Tokyo Steels Tahara plant near Nagoya has been forced
to pare production to 60 percent of its forecast at the start
of the year, and the company last month announced a
128-billion-yen ($1.38-billion) impairment charge that will
widen its net loss for the fiscal year ended March 31 to 146
billion yen ($1.57 billion).
A version of this article was
first published by AMM sister publication Steel First.