South Korea: Hyundai Steel Cuts Scrap Purchase Price By USD 19

It is reported that Hyundai Steel Bids for Japanese Scrap have now fallen close to 3 years low levels.

South Korean leading EAF steelmaker – Hyundai Steel has lowered its purchase bids for Japanese scrap by another JPY 2,000/MT (USD 19) today, in its first price revision for this month, after observing 3 price cuts in Sep’19. The Prices have now plunged sharply by JPY 5000/MT in total since the beginning of Sep’19, in line with the continuous free-fall in the Japanese scrap market, while a further drop in prices can not be ruled out.

In bids presented today for Japanese scrap, the company has reduced its H2 scrap bids to JPY 22,000/MT (USD 204), FoB Japan as against JPY 24,000/MT (USD 222), FoB presented in 27th Sep’19. The bid for other grades of scrap such as H1, stands at JPY 22,000/MT (USD 204), FoB, while shredded and HS scrap now stand at JPY 23,000/MT (USD 213) & 25,000/MT (USD 232) FoB respectively. Higher quality Shindachibara scrap’s purchase bid stands at JPY 25500/MT (USD 236), FoB Japan.

Reportedly, this is the lowest purchase bid by the company in almost 3 years, as prior to this, the bids had fallen to JPY 22000/MT back in the second week of November 2016. As per data maintained with SteelMint, this is the first time in 18 months that the company has lowered its scrap purchase bid by JPY 2000/MT in one go, after April’18.

Amid the ongoing downturn in the Japanese market, export offers of Japanese scrap have been witnessing a consistent fall. This month’s Kanto Tetsugen’export tender of Japan concluded earlier this week on 9th October, where the winning bid dropped sharply by JPY 2,556/MT (USD 24) M-o-M, to JPY 22,293/MT (USD 208) FAS.