Tokyo Steel raises scrap purchase prices- 17 Apr 11

On April 15, Tokyo Steel announced to raise the H2 scrap purchasing prices by ￥2,000/ton to ￥39,000~￥41,000/ton averagely.
After the price hike, the latest purchase prices of H2 scrap in Okayama, Kyushu and Tahara plant are at ￥41,000/ton; that in Takamatsu plant and Utsunomiya are at ￥39,000/ton.
In fact, Tokyo Steel has increased the scrap prices by ￥4,000/ton for consecutive three times in April.
Industry sources pointed out that buyers’ purchase for stockpile before the long holiday in May has supported Tokyo Steel to raise the scrap prices.
However, it’s predicted that the scrap prices would dip as the steel mills might reduce production due to Japanese government’s power consumption cut after the long holiday in May.