Purchasing price of Tokyo Steel'scrap dropped to the lowest level since 5-month

October 19 MetalBiz--As the largest electric furnace steelmaking in Japan as well as the domestic major benchmark price maker for steel scrap, Tokyo Steel adjusted down the purchasing price for seven times to the lowest level since mid-May.

Tokyo Steel's Okayama mills decreased the purchasing price for steel scrap by 500 yen per ton (U.S. $ 5.5 per ton) to 23,500 yen per ton, Kyushu steel mills adjusted down 500 yen per ton to 23,000 yen per ton, Takamatsu mills reduced 500 yen per ton to 22,500 yen per ton and Utsunomiya mills cut 500 yen per ton to 21,500 yen per ton. After adjustment, the purchasing price dropped 33% from the high level in mid-August.

Tokyo Steel will adjust the purchasing price of steel scrap for November delivery this week. The company said that although the sharp decrease of cost can help to reduce the operation cost, due to the sluggish demand in domestic market, the disordered fall of scrap price may impose the negative impact on making purchasing price.

In the export bidding conference of last week, the export price of Japan' s steel scrap also saw drops and the average price declined from 29,735 yen per ton in previous months to 23,164 yen per ton, down more than 29% over the highest price in mid-August.