After Dongkuk Steel raised Japanese scrap purchase prices by Yen 500/MT, South Korea’s leading steel mill Hyundai Steel also raised its bids by Yen 500/MT today.
As per latest update, South Korea’s leading electric arc furnace steelmaker – Hyundai Steel has raised its import prices for Japanese H2 ferrous scrap further by Japanese Yen 500/MT(USD 4). Its latest bid put for H2 grade scrap was at JPY 36,000/MT (USD 318), FoB Japan against its last bid reported on 15th Dec which was at JPY 35,500/MT (USD 313) FoB Japan.
New prices for other grades of scrap are assessed for H1/2 (50:50) at JPY 36,500/MT(USD 310), SD scrap at JPY 39,000/MT(USD 332), HS scrap at JPY 39,000/MT and SB scrap at JPY 41,000/MT while Shindachi Press scrap at JPY 42,000/MT(USD 350) on FOB Japan basis respectively.
South Korean leading steelmaker Dongkuk Steel has also raised Japanese scrap buying prices today by JPY 500/MT(USD 4).The latest bid placed was at JPY 40,000/MT, CFR following which other South Korean mills are rising bids for Japanese H2 scrap to JPY 36,500-37,000/MT (USD 322-327), FoB Japan.
Notably, this is the 3rd consecutive increase in scrap buying prices by Hyundai Steel in Dec’17 while about in a last one month’s time bids have raised by USD 22/MT (JPY 2,500) for Japanese H2 scrap.
Hyundai steel resumed operations at B and C hot rolling mill – An accident had last week at Dangjin factory of Hyundai Steel, probably could have affected its daily production capacity which is around 3700 MT per day. However, as per the latest updates, the company has resumed operations at its B and C hot rolling mill yesterday. Following this, the Hyundai Steel would have increased scrap purchase bids now.
Japanese scrap demand remained robust amid tightened supply in domestic as well as exported scrap markets as the construction activities are at peak in Japan. Japanese sellers now expect offers to move above JPY 41,800/MT, CFR however presently, no significant trades being reported as buyers are resisting offer levels even lower by JPY 500 than present offer levels.
Japanese domestic ferrous scrap prices (Tokyo Steel, Japan) –
1. H2 for Tahara Plant at JPY 37,000/MT, at works gate
2. H2 for Okayama and Kyushu works at JPY 35,500/MT, at works gate
3. New Cutting Press A for Tahara Plant at JPY 40,500/MT, at works gate
4. New Cutting Press A for Okayama, Kyushu and Utsunomiya works at JPY 37,500/MT, at works gate
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