Japanese scrap export offers for South Korea have risen sharply in latest deals made to South Korean steelmakers. As an outcome of Japan’s monthly Kanto scrap export tender, scrap export offers were expected to surge. Notably, prices Kanto tender for Aug’20 increased to 1-year high levels and was concluded at a JPY 27,216/t ($257) FAS.
Currently, Japanese suppliers are quoting around JPY 28,000-29,000/t FoB basis for H2 scrap, SteelMint learnt from traders.
South Korea’s major steelmaker – Hyundai Steel presented bids for around 100,000 t Japanese scrap purchase on 19th Aug’20. Hyundai Steel had put up bid for Japanese H2 scrap at JPY 27,000/t ($ 256) FoB Japan. However, the deal was concluded for just 30,000 t of Japanese H2 scrap in response to bids put. Out of this, 6,000 t scrap was booked at around JPY 27,500/t FoB basis.
Bids for other higher grades were also risen, with prices for Japanese HS at JPY 29,500/t, while Shredded and Shindachi bara bids are at JPY 29,000/t FoB Japan, as per inputs received from Steel Daily.
Hyundai Steel has entered the Japanese market after a gap of a few weeks, and for the time being, the company had booked Russian scrap, due to high Japanese scrap offers.
Another steel manufacturing giant, POSCO Steel has also settled for 10,000 t of Japanese HS grade scrap, and bid was at JPY 32,500/t CFR basis.
Japanese scrap offers to South East Asia also witness increase – Imported scrap offers to Vietnam from Japan has also climbed by $20/t to $300/t CFR basis, as compared to $280/t was reported by SteelMint earlier in the week, however, buying interest is low at increased offers
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