TOKYO Tokyo Steel Manufacturing Co. Ltd. has again cut its scrap purchasing prices in a weakening market.
The company reduced truck- and seaborne ferrous scrap buying prices by 500 yen ($5) per tonne for deliveries to its Tahara, Kysuhu, Okayama and Takamatsu facilities effective April 20.
Delivery prices to its main facility in Utsunomiya, Japan, were unchanged.
As a result, Japans largest mini-mill operator is now paying 33,000 yen ($332) per tonne for deliveries to Tahara and Utsunomiya, 32,000 yen ($322) per tonne for those to its Kyushu and Okayama plants and 31,000 yen ($312) per tonne for those to its Takamatsu service center.
The latest move brings this months total cuts for deliveries to Tahara and Utsunomiya to 2,000 yen ($20) per tonne, or about 6 percent; and 2,500 yen ($25) per tonne, or more than 7 percent, for deliveries to the Tokyo-based companys other plants.
Meanwhile, the national average price of H2-grade scrap stood at 32,286 yen ($325) per tonne in the third week of April, marking the second consecutive week of declines.
Prices are expected to continue falling in the short term as the country heads into the Golden Week national holiday.
Scrap prices have jumped by as much as 50 percent over the past five months after the weakening yen led to a large increase in export prices.