The steel maker has reduced bids for Japanese scrap after time span of almost seven weeks.
Amid lowering domestic scrap prices in South Korea, Hyundai Steel has lowered bids for high grade Japanese scrap today.
As per latest price update of 30th Mar’18, Hyundai Steel has reduced bids for Japanese scrap by Yen 1,000/MT (USD 9) for high grade scrap.
The bids have come down as Korean steel makers have cut domestic ferrous scrap purchase prices by KRW 10,000/MT (USD 9). Also scrap prices in Japan’s Kanto region have moved downwards along with decline in Gulf regions. All these factors have collectively put prices on softening mode.
Bids put by Hyundai Steel for both Shredded and HS are assessed at JPY 39,000/MT (USD 367) respectively. Its latest bids presented for high-grade scrap like Shindachi Daichibara (SB) and Shindachi Press at JPY 42,000/MT (USD 396) and at JPY 43,000/MT (USD 405) on FOB Japan basis respectively.
However Hyundai Steel skipped placing bids for H2 grade and H1/2 this time as they see sufficient supply for the material along with sufficient scrap inventories available with them.
Prior to this in the last weeks’ Hyundai Steel kept bids unchanged for all grades of scrap. H2 grade scrap bids remained at JPY 37,000/MT, FoB Japan. While prices for other low grades like H1/2 (50:50) remained at JPY 37,500/MT and for both Shredded and HS at JPY 40,000/MT. While for high-grade scrap like Shindachi Daichibara (SB) and Shindachi Press remained at JPY 43,000/MT and at JPY 44,000/MT on FOB Japan basis respectively.
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.
JPY depreciates against USD – In last seven days, Japanese Yen (JPY) depreciated against USD. USD/JPY exchange rate stood to 106.3 today as against 104.9 on 23rd Mar ’18.
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