Tokyo Steel sixth time since the beginning of the month increased the procurement prices for scrap
the Largest electrometallurgical company in Japan, Tokyo Steel announced the sixth increase in purchasing prices for scrap metal this month, which will take effect immediately, since its previous increase are unable to increase the flow became a shortage of scrap.
Tokyo Steel will increase the purchase prices of scrap by 500 yen (about us $ 4,66. USA) per ton for plants Okayama and Takamatsu, and at 1000 yen for Utsunomiya plant. Thus the company is willing to buy scrap at prices of at least 22 500 yen (about 209,70 US$) per ton.
the price policy, Tokyo Steel watch most of the Japanese companies involved in the harvesting and processing of ferrous scrap.
as the domestic price of Japanese rebar now stands at about 55,000 yen, the soaring prices for scrap will force manufacturers to raise prices or stop their power. Many market participants expect steel producers will raise the selling price of rebar next week.
According to Japanese trader offers from domestic suppliers of scrap were still restricted and were on a high price level, as they expect further growth of the deficit, in the absence of new export contracts since early June.
In may, a rare foreign scrap suppliers offered in Japan for 26,000 yen or more than US $ 240 per ton FOB.