South Korean leading EAF steelmaker – Hyundai Steel has again lowered the bids for Japanese scrap purchase by JPY 1,000/MT (USD 9) today. With the continued slide in Japanese domestic scrap, further lowering by Tokyo Steel as well as the recent softening in South Korean domestic scrap prices, it was expected that another price lowering by the company was on the cards.
In bids presented today for Japanese scrap, the company has reduced H2 scrap bids to JPY 28,000/MT (USD 260), FoB Japan as against JPY 29,000/MT(USD 269), FoB presented last week. While bids for Shin Taichibara stood at JPY 30,000/MT, FoB Japan. This comes as the 2nd price cut from Hyundai Steel in June‘19, while the company has reportedly rejected contracts of last week’s bid, worth more than 50,000 MT, while a continuation in decline of Japanese scrap prices is expected for the time being.
Hyundai Steel booked 50,000 MT scrap vessel from Russia – Last week’s negotiation for Russian scrap concluded at USD 295/MT for 50,000 MT (A3 grade) scrap, marginally lower than the previous booking. Apart from this, no new booking was reported. Before this the company had booked a mixed grade bulk cargo of 40,000 MT from the USA west coast.
Japanese domestic ferrous scrap index falls sharply – As per the announcement by Japan Association, the average price of Japanese H2 scrap for the 3rd week of June has fallen by another JPY 800/MT W-o-W and currently stands at JPY 27,100/MT. Notably, this is the 10th successive decline in Japan’s Steel scrap index since mid-April ’19.
~Inputs from Steel Daily
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