MetalBiz reported that Tokyo Steel has adjusted down the purchasing price for seven times to the lowest level since mid May 2009.

As per report, Tokyo Steel's Okayama mills decreased the purchasing price for steel scrap by JPY 500 per tonne to JPY 23,500 per tonne, Kyushu steel mills adjusted down JPY 500 per tonne to JPY 23,000 per tonne, Takamatsu mills reduced JPY 500 per tonne to JPY 22,500 per tonne and Utsunomiya mills cut JPY 500 per tonne to JPY 21,500 per tonne.

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 JPY 29,735 per tonne in previous months to JPY 23,164 per tonne, down more than 29% over the highest price in mid August.

(Sourced from MetalBiz)