TOKYO Japanese ferrous scrap prices look set to fall again after Tokyo Steel Manufacturing Co. Ltd. cut its purchase prices effective April 17.
The steelmaker reduced seaborne and truck-borne purchase prices of most grades of scrap by 1,000 yen ($10) per tonne to its Tahara plant and 500 yen ($5) per tonne to its other four units.
As a result, the Tokyo-based company is now paying 33,500 yen ($344) per tonne for deliveries to Tahara, 33,000 yen ($339) per tonne for deliveries to its main Utsunomiya plant, 32,500 yen ($334) per tonne for deliveries to its Kyushu and Okayama units, and 31,500 yen ($324) per tonne for deliveries to its Takamatsu facility.
Tokyo Steels cuts so far this month have totaled 1,500 yen ($15) per tonne for deliveries to Tahara and 2,000 yen ($20) per tonne for those to the companys other plants.
The latest move follows a brief period of relative stability in the Japanese ferrous scrap market after price declines at the beginning of the month were halted by smaller-than-expected export-price reductions and a temporary rise in the value of the yen.
Japanese scrap prices have risen about 50 percent over the past five months as the weakening yen led to a massive jump in export prices. This has placed huge pressure on the countrys mini-mills, which are likely to follow Tokyo Steels example and cut their purchase prices.
A version of this article was first published by AMM sister publication Steel First.