As per recent reports, South Korean leading EAF steelmaker, Hyundai Steel has lowered open bids for Japanese scrap by another JPY 500/MT (USD 4.47) again this week following softening Japanese domestic scrap prices. In bids presented today for Japanese scrap, the company has reduced H2 bids to JPY 32,500/MT (USD 291), FoB Japan against JPY 33,000/MT, FoB bids presented during the previous week.
According to reports, it is estimated that about 100,000 MT of scrap was offered to Hyundai Steel this week in its bidding for Japanese scrap. The company maintains a downward trend for Japanese scrap by lowering prices marginally this week.
Hyundai steel is the largest buyer of Japanese scrap which imports around 2.5 MnT scrap every year comprising around 30% of total Japanese yearly scrap exports. Hyundai’s bidding for Japanese scrap is considered to be the benchmark for East Asian scrap market.
Japanese scrap prices continue downtrend – Presently, Japanese H2 scrap market purchase prices are being reported in the range of JPY 31,000-32,000/MT (USD 277-286) in the Kanto region while H2 purchase price in Gulf region is trading at around JPY 31,000-31,500/MT.
Japan’s leading steelmaker Tokyo Steel reduced scrap purchase prices by JPY 500/MT at all plants effective from 11th Apr following which many other EAF steelmakers in Kanto and Kansai regions have lowered scrap prices further by JPY 500-1000/MT in Japan. Prices in Kanto region hit around 2 month’s low while in the Kansai region, prices fell JPY 500/MT to JPY 33,000/MT, lowest since the end of Feb’19.
Production in the Kansai area is expected to decline by about 10% in April compared to March but for Osaka and Himeji areas it is expected to remain relatively high to total around 400,000 MT in Apr’19. In result, prices could be slightly higher in other regions than that of in Kanto and Kansai region in Japan.
Participants anticipate that Japanese scrap prices may continue downtrend as average bid declined by USD 15 on a monthly basis in Kanto’s monthly scrap export tender concluded on 10th of Apr’19 for May exports. However, restocking ahead Golden week holidays for 10 days during (26th April-6th May) may keep sentiments supported.
~Inputs from Steel Daily & Japan Metal Daily
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