South Korea: Hyundai Steel Books Japanese H2 Scrap after 4 Months’ Gap

South Korean leading EAF steelmaker Hyundai Steel has contracted for Japanese H2 scrap after the gap of almost 4 months’ period. According to recent reports, steelmaker has slashed bids for Shindachi grade scrap and H2 by JPY 1,000/MT (USD 9) as against last weeks’ report.

In the recent contract concluded, Japanese Shindachi and H2 have been booked at corrected prices but the contract volume was not confirmed till the publishing for this article. Participants likely to wait in order to be predict the market direction as volumes are expected to be small.

High grade Shindachi scrap heard to have booked at JPY 39,500/MT (USD 350), FoB, as against JPY 40,500/MT, FoB levels at which 24,000 MT Shindachi scrap was procured through individual negotiation last week.

Moreover, the steelmaker booked Japanese H2 at JPY 31,500/MT (USD 279), FoB as against last weeks’ expectations at JPY 32,500/MT, FoB. Hyundai’s import price difference between Japanese H2 and Shindachi grade remains at JPY 8,000/MT. Participants were eagerly waiting for Hyundai’s purchases to be normalized.

Earlier there were reports that Hyundai Steel might not bid for Japanese H2 till Jan’18 expecting that its’ purchase requirement might not have recovered for low-mid grade scrap. It was also assumed that amid high inventories it might remain away from buying H2. However, amid sharp fall in Japanese domestic scrap prices hitting almost 1 year low, scrap exporters have turned active amid rising stocks and an anticipation of further price drop in the market.

In the mid of the week, South Korean SeAh Besteel booked Japanese Shindachi scrap at JPY 41,500/MT, CFR for which delivery is scheduled in Jan’18.

Japanese scrap prices fall almost USD 35-53/MT in a months’ time – Japan’s Tokyo Steel has cut its scrap buying seven times in last 1 months’ period pulling prices down by total of JPY 4,000-6,000/MT at its all five plants in Japan. H2 buying price at its Utsunomiya works in Kanto region stands at JPY 33,500/MT which was almost JPY 37,500/MT a month ago. While central region Tahara plant fetches H2 at JPY 32,500/MT.

~ Inputs from SteelDaily