South Korea’s leading EAF steelmaker – Hyundai Steel has suspended its bids for all grade of Japanese scrap for this week too amid sufficient inventories and ample numbers of contracts in hand. Amid increased offers from Japanese scrap suppliers owing to tight market supply conditions amid summers, Hyundai Steel has kept away from booking Japanese scrap.
Last bids made for H2 was at level of JPY 33,000/MT (USD 298), FoB Japan despite rise in Japanese prices. While currently prices are hovering around Yen 35,500-36,000/MT (USD 320-325) in Gulf and Kanto region.
The steelmaker booked another USA bulk scrap cargo – Hyundai Steel has signed another new contract for 45,000 MT of HMS 1 from USA at USD 349/MT, CFR South Korea for October delivery. According to reports, the steelmaker has continued to import bulk scrap vessels from USA amid high Japanese scrap prices. Hyundai is likely to continue purchasing two bulk vessels per month from USA.
Increasing steel scrap consumption – Hyundai Steel is also looking for production of special steel for automobiles following which its scrap consumption is increasing. Its production is expected to increase by 70,000 MT in H2 CY18 as against H1 CY18.
Vietnamese scrap importers shift to other suppliers over high Japanese prices – According to sources, Vietnamese scrap buyers are preferring to buy ferrous scrap from USA and Europe at the moment to fetch better prices as Japanese export offers are comparatively high to afford. Offers for Shredded assessed at around USD 355-360/MT,CFR and HMS 1&2 assessed at USD 340-345/MT, CFR Vietnam. Bulk scrap offers from Hong Kong heard at USD 350-353/MT and Japanese H2 offers at around USD 350-355/MT, CFR Vietnam.
A 40,000 MT mix bulk scrap cargo heard to have booked comprising HMS 1&2 (65:35) and Shredded from Europe at USD 352/MT,ex Phu My port Vietnam.
~Inputs from Steel Daily
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