South Korean mill – Hyundai Steel has increased bids by JPY 6,500 ($63) for Japanese scrap in bids presented today, SteelMint gathered from its sources. The company has set a new bid price for H2 scrap at JPY 40,000/t level, while the same for HS and Shindachibara stands at JPY 43,500/t FoB level. Notably, the company has made a bid for H2 after a gap of one month. Prices have risen after a sharp hike in bids of Kanto Tetsugen tender held yesterday.

Japan’s Kanto scrap export monthly tender, which was concluded yesterday observed a sharp hike in bids. A total of just 12,000 t of Japanese H2 scrap was awarded at an average price of JPY 38,710/t ($371) FAS basis, which is around 10 years high and the weighted average bid has increased by JPY 8,105/t ($78) m-o-m.
SteelMint’s assessment for Japanese H2 stands at JPY 38,000-39,000/t FoB level, increasing considerably by JPY 5,000/t w-o-w, on recovering steel production, while scrap generation and supply remains on the lower side.
Steel mill books Japanese scrap at favourable price – Earlier this week a South Korean steel mill has concluded a deal for 2,000 t of Japanese H2 at JPY 35,500/t FoB level. According to the market situation, the deal was concluded at favourable price, looking at the immediate sharp hike in offers after Kanto tender result concluded yesterday, SteelMint learnt.
Vietnamese mills bid high for Japanese scrap- Increasing domestic finished steel demand, Vietnam based steel mill booking Japanese scrap more aggressively at increased levels. Interestingly, Vietnam remains the winner in Japan’s Kanto tender result as the country has booked two bulk cargoes in slots of 6,000 t of scrap each at JPY 38,910/t ($373) and JPY 38,510/t ($369) respectively, for Jan’21 shipment. Due to scrap shortage in Vietnam, mills may even pay $420/t CFR level for Japanese H2, highlighted a trader.
Japanese domestic scrap prices rise with Tokyo Steel’s raising bids- Japan’s leading EAF mill- Tokyo Steel has adjusted its scrap purchase price twice this week, and prices have increased by total of around JPY 3,000/t in price revisions for all of its plants. After a second price revision, which is effective from today (11th Dec’20), the company would pay JPY 37,500/t ($358) for H2-scrap delivered to Tahara and JPY 33,000/t ($315) for Utsunomiya works in Kanto. This is the company’s fifth price hike in Dec’20.
Tokyo Steel scrap purchase price effective from today (11th Dec’20)

Price in JPY
Source: Tokyo Steel report

Leave a Reply