South Korea’s leading steel maker – Hyundai Steel has reduced its purchase prices for Japanese H2 ferrous scrap by (Yen 1,000/MT) USD 9/MT on 1st Sept’17 after three consecutive hikes in previous month Aug’17. Bid prices for Sindabachi and HS grade scrap decreased by Japanese Yen 500 /MT than its previous bids. Offers have slipped down over a weak demand sentiments.
Hyundai Steel bid prices for H2 grade of scrap now stood at USD 298 /MT (Yen 32,500) FoB, Japan. While, bids for HS accessed around USD 325 /MT (Yen 35,500) and Sindabachi scrap accessed around USD 335 /MT(Yen 36,500), FoB Japan.
Earlier to this prices for H2 were lifted at Yen 33,500 on 25th Aug’17.Hyundai Steel managed to bid higher for short period than other South Korean mills in order to secure higher material. As per reports, recent deal concluded by Hyundai steel fetched large volume of around 120,000 MT.
Hyundai steel ranked 13th in the list of top steel producing companies in the world and recorded a production of 20.09 MnT in CY16. Hyundai steel bids set benchmark in the South Korean scrap market.
Japanese traders consider bids offered by South Korean mills as a trend setter in the market as hardly any other buyer accepts bids higher than that of offered by South Korean mills for imported scrap in Japan.
Japan’s Tokyo Steel’s prices for all grades of scrap delivered to its Utsunomiya works in north of Tokyo is at Yen 32,500/MT after it had increased prices in 24 Aug’17.
Japanese mills have started to collect H2 scrap further and traders are currently paying around Yen 31,500/MT FAS to collect H2 material to be exported from eastern Japan, down Yen 1,000/MT from a week ago in Japan.
The overall ferrous scrap market right now is running with weaker sentiments, amid lack of reviving in demand after holidays in most of the major importers like Turkey, the offers have shown a little fall.
Japan’s monthly scrap export tender scheduled on 12 Sept’17:
The ‘Kanto Tetsugen’ Japan’s monthly H2 scrap export tender will be held on September 12, most of the industry participants are waiting for a clearer price trend before this tender.
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