TOKYO Japanese ferrous scrap prices continued their downward trek this week as steel mills struggle to maintain profitability.
Tokyo Steel Manufacturing Co. Ltd., the countrys largest electric-arc furnace operator and effective benchmark price-setter, has reduced its purchase prices for the steelmaking raw material by 500 yen ($5) per tonne for deliveries to all five of its works, effective Jan. 7.
As a result, it is now paying 38,000 yen ($364) per tonne for both overland and seaborne deliveries of H2-grade scrap (a mix of No. 1 and No. 2 heavy melt) to its Okayama, Kyushu, Tahara and Utsunomiya plants; and 37,000 yen ($354) per tonne for those to its Takamatsu Works.
The company cut its buying prices by a similar amount Dec. 26 after the prices it was paying hit the highest level in more than two-and-a-half years.
Scrap prices had previously recorded eight weeks of consecutive increases starting in mid-October, surging 13.6 percent during the period.
Tokyo Steel had warned that it would consider importing material if domestic prices remained higher than overseas prices.
A version of this article was first published by AMM sister publication Steel First.