South Korean leading EAF steelmaker – Hyundai Steel has further lowered the bids for Japanese scrap purchase by JPY 1,000/MT (USD 9) today. Amid a sharp downturn in Japanese domestic scrap prices observed in a recent couple of weeks, another price cut by the company was imminent, while Dongkuk Steel and few other EAF steelmakers in South Korea had already signed contracts at lowered bids this week.
In bids presented today for Japanese scrap, the company has reduced H2 scrap bids to JPY 27,000/MT (USD 250), FoB Japan as against JPY 28,000/MT (USD 259), FoB presented 2 weeks ago. While bids for other grades of scrap like H1 stood at JPY 28,000/MT, FoB, Shredded and HS scrap at JPY 30,000/MT (USD 278) and Shindachi Daichibara & Press scrap at JPY 31,000/MT (USD 287), FoB Japan.
After observing 9 successive prices reductions in scrap purchase bids since early Apr’19, the prices have dropped by JPY 6000/MT (USD 56) in total during this period, while the current bid from Hyundai Steel is its lowest in last 2 years as prior to this JPY 26,500/MT levels were witnessed in July’19, when the Japanese domestic scrap price had also plunged to JPY 26,000/MT levels (H2).
Last week the company had booked 50,000 MT of Japanese scrap at bids presented on 19th June’19. The company reportedly received offers for US Bulk cargo of HMS at USD 295-300/MT, while no new booking was confirmed. It was also heard from sources that Hyundai Steel will be going for EAF repair, however, the same could not be verified from the company.
Hyundai steel is the largest buyer of Japanese scrap which imports around 2.5 MnT scrap every year comprising around 30% of total Japanese yearly scrap exports. Hyundai’s bidding for Japanese scrap is considered to be the benchmark for East Asian scrap market.
Japanese domestic ferrous scrap prices fall sharply – With low inquiries from overseas importers of Japanese scrap as well as continued slowdown in domestic finished steel demand, Japanese prices have hit hit 2 year low levels and currently stand in the range of JPY 26,000 for H2 scrap in Central Japan, however with rising global prices, slight increase in orders from South East Asia is expected.
Inputs ~ SteelDaily
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