Imported scrap prices to South Korea weaken further this week. The countries leading EAF steelmaker Hyundai Steel has today bid for Japanese scrap, pulling the prices by JPY 1000/t against deals in the last week.
The bid price for the higher grades including HS scrap, Shin dachi and Shin dachi press was set at JPY 25,000/t ($232) by the steelmaker, however, no deals were reported at this level. Although the company hasn’t bid for H2 this time, these bids put H2 scrap at JPY 22,500/t ($209), further down from JPY 23,500/t prices last-week, and down by JPY 5000/t ($47) since mid-June levels.
Prior to this, the company had booked a bulk cargo for Japanese H2 scrap at JPY 23,500/t FoB Japan basis, in the closing of last week. While another booking was reported by a Korean mill of 10,000 t of H2 scrap at JPY 24,000/t FoB Japan.
Domestic- Tokyo Steel observes further price cut
Japan’s leading EAF mill, Tokyo steel has further cut its domestic scrap H2 purchase prices for all five of its works. For Tahara works H2 scrap prices have been cut by JPY 1000/t ($ 9) and JPY 1500/t ( $ 14) for the Utsunomiya plant, while the other 3 works have seen a cut by JPY 500/t. The new prices will be effective from tomorrow, 4th July ’20.
After the said price cut, the company will pay JPY 22,500/t ($ 209) for H2 scrap to the Tahara plant in Central Japan and JPY 21,500/t ($ 200) for the Utsunomiya plant in the Kanto region.
For the other 3 works the company will now pay, JPY 23,500/t ($ 218) for H2 scrap delivered to Okayama plant, while JPY 24,000/t ($ 223) and JPY 22,500/t ($ 209) for Kyushu and Takamatsu works respectively.
Utsunomiya works which are situated in the Kanto region has shown the steepest decline, with new bids having dropped to the same levels as early June’20 when the prices had been a sharp uptrend.
Tokyo Steel’s bids for scrap purchase from 4th July’2020
Price in JPY
Source: Tokyo Steel Reports
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