As per the recent report by SteelDaily, South Korean leading steelmaker Hyundai Steel has concluded bulk cargo contracts for ferrous scrap from Russia and Japan at further corrected prices.
Hyundai Steel cuts bid for Japanese scrap by JPY 500/MT (USD 5) – It is reported that Hyundai has booked 70,000 MT of H2 at JPY 30,500/MT (USD 278) which is JPY 500/MT lower than the previous bids presented before starting of Gloden week holidays at JPY 31,000/MT, FoB. Also, last week Dongkuk Steel has booked H2 at the same prices.
The company has recently booked 10,000 MT of Russian Steel Scrap (A3 grade) at USD 302/MT, CFR. Notably, this deal has concluded at the price USD 19 lower than the previous contract which was concluded at USD 321/MT, CFR for 20,000 MT by Dongkuk Steel in the mid-Apr’19.
Hyundai steel is the largest buyer of Japanese scrap and it’s bidding for Japanese scrap is considered to be the benchmark for East Asian scrap market. Japan’s monthly Kanto scrap export tender fetched bids higher than current market prices at an average of JPY 30,597/MT (USD 279), FAS on 10th May’19. However, Hyundai’s bid for H2 seems to have remained lower by JPY 1,000/MT against Kanto’s result as Global scrap prices have dropped sharply.
Last week Japan’s leading EAF mini-mill – Tokyo Steel resumed operations after the Golden week holidays and lowered the domestic scrap purchase price by JPY 500/MT (USD 5) at all five works in Japan, effective from 9th May’19 with current price for H2 scrap delivered to Utsunomiya plant at JPY 29,000/MT (USD 264).
Bulk cargo contract prices for South Korea steelmakers are expected to fall further as it is anticipated that another contract from US is being negotiated by Hyundai Steel for large-sized cargo at corrected prices.
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