Over an ample number of contracts already available in hand for H2 and H1/2, Hyundai Steel did not bid for low-grade scrap, while kept bids unchanged for high grade amid considerable demand.
South Korea’s leading EAF steelmaker – Hyundai Steel has presented bids for high grades of Japanese scrap today for this week. As per updates received on this, Hyundai Steel has kept the bids for high-grade Japanese scrap stable as against last week while steelmaker abandoned the bids for the lower grade like H2 and H ½ owing to considerable inventories in hand.
Latest bids remain unchanged against last bids for medium grade scrap like HS and Shredded at JPY 38,000/MT (USD 348) and for high-grade scrap Shindachi Daichibara (SB) at JPY 41,000/MT (USD 375) on FoB Japan.
This week Hyundai Steel heard to have placed bid for total 130,000 MT scrap while it secured total 70,000 MT H2 and HS through last week bids. Last week Hyundai resumed bids for Japanese scrap raising bids for H2 by USD 9/MT and high-grade scrap by USD 18/MT with increased buying interest for high-grade scrap. Notably, Hyundai steel’s last bids for H2 scrap was at JPY 34,000/MT (USD 312), FoB Japan.
Two large bulk scrap vessels booked by Hyundai Steel a month ago have unloaded in last couple of days in South Korea. A cargo 50,000 MT from Europe unloaded at Dangjin mill and another cargo containing 30,000 MT from USA unloaded at Incheon factory. Thus inventories with Hyundai Steel have recovered at considerable levels this week. Hyundai Steel also confirmed Russian long-term contracts earlier last week amid high Japanese scrap prices and more competitive Russian scrap offers.
Japanese suppliers eyeing for H2 offers at around JPY 36,000/MT, FoB have been witnessing strong resistance from South Korean steel mills at these levels. Declining South Korean purchases and weak demand from other importing countries Japanese scrap export prices are slightly under pressure.
Japanese domestic scrap prices remain strong – Japan’s leading EAF steel mini-mill – Tokyo Steel has raised its domestic scrap purchase prices again by USD 5/MT at Utsunomiya works effective from 07th Jun’18. Now H2 scrap fetches at JPY 37,000/MT (USD 335) for Utsunomiya which is based in the Kanto region in north Japan and JPY 35,500/MT at Tahara works in Central Japan.
According to price indices reported by Japan Iron and Steel Association, domestic scrap prices have increased successively for the third week in Japan. The average price index for H2 scrap increased to around JPY 33,600/MT (USD 308) up by JPY 200/MT on W-o-W basis. For Kanto region, H2 assessed at JPY 35,300/MT (up JPY 500/MT W-o-W) and for central region price index assessed at JPY 34,400/MT respectively.
Japanese scrap market awaits for Kanto Tetsugen tender which is scheduled to be conducted on 13th Jun’18. Supply and demand gap is likely to get tightened further on export shipments in Kanto Tender next week.
– Inputs from Steel Daily
Leave a Reply