South Korean leading EAF steelmaker Hyundai Steel has reduced Japanese imported scrap bids by JPY 1000/MT, assuming scrap prices would have reached a short-term peak in Japan.
In line with downward turn witnessed in global scrap prices, South Korea’s leading electric arc furnace steelmaker – Hyundai Steel has reduced its import prices for Japanese H2 ferrous scrap by Japanese Yen 1000/MT (USD 9). Its latest bid put for H2 grade scrap was at JPY 36,500/MT (USD 330), FoB Japan against its last bid reported on 15th Jan’18 which was at JPY 37,500/MT (USD 339) FoB Japan.
New prices for other grades of scrap are assessed for H1/2 (50:50) at JPY 37,000/MT (USD 334), Shredded scrap at JPY 39,500/MT (USD 357), HS scrap at JPY 39,500/MT and SB scrap at JPY 41,500/MT while Shindachi Press scrap at JPY 42,500/MT (USD 384) on FOB Japan basis respectively.
This is first price drop the company has witnessed since last two months. In last six consecutive price hikes, Hyundai steel had witnessed an increase of around JPY 5500/MT (USD 50) in scrap purchase bids since 20th Nov’17. Hyundai steel has fetched significant quantity of scrap at sharply raised prices and expecting scrap purchase prices in Japan would have reached its short-term peak, the company has reduced Japanese scrap bids recently.
Hyundai Steel is one of the largest buyers of Japanese scrap. According to market participants company imports yearly around 500,000-600,000 MT scrap from Japan.
Japanese scrap demand remained robust amid tightened supply in domestic as well as exported scrap market as construction activities were at its peak in Japan.
Recently many of the South Korean leading steelmakers have cut domestic scrap purchase prices upto KRW 10,000-15,000/MT (USD 9-14) and imported scrap prices in world’s largest scrap importer Turkey have declined sharply by USD 12-15/MT last week.
South Korea’s another leading scrap importer Dongkuk steel placed its last scrap purchase bid at JPY 37,000/MT, FoB Japan. Looking at fall in scrap purchase price of Hyundai Steel, other South Korean steel mills may also reduce their bids.
Leave a Reply