TOKYO Tokyo Steel Manufacturing Co. Ltd. has adjusted its scrap purchase prices for the first time in a month, cutting them by ¥500 ($5) per tonne.
The reduction will affect delivery charges to four of its five works, with those to its Tahara unit left unchanged.
As a result, Japans largest electric-arc furnace (EF) operator and effective benchmark price-setter now pays ¥32,500 ($326) per tonne for both land and seaborne deliveries to Tahara, ¥32,000 ($321) for those to its main Utsunomiya factory, ¥31,500 ($316) per tonne for those to its Kyushu and Okayama plants, and ¥30,500 ($306) per tonne for those to its Takamatsu facility.
The companys latest price adjustment, its first since May 7, amounts to scrap charge reductions of 6 to 9 percent since early April, or ¥2,000 to ¥3,000 ($20 to $30) per tonne.
Moreover, traders say that after a period of relative stability, sentiment is becoming increasingly bearish and other mini-mills are likely to follow Tokyo Steels lead in reducing charges, particularly with the yen gaining strength over the past few days just as U.S. scrap prices appear to be retreating.
A version of this article was first published by AMM sister publication Steel First