South Korea’s leading steel maker – Hyundai Steel has further raised its import prices for Japanese H2 ferrous scrap by ( Yen 1,500/MT ) USD 14/MT,amid increasing global scrap prices.
Hyundai Steel bid prices for H2 grade of scrap now stood at USD 298 /MT (Japanese Yen 32,500) FoB, Japan.Earlier to this prices were lifted at around USD 284 /MT on 8th Aug’17.While, bids for shredded scrap accessed around USD 321 /MT (Japanese Yen 35000).
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. The steelmaker has total crude steel production capacity of 24 MnT including 12 MnT from blast furnaces and 12 MnT from electric arc furnaces.It mainly imports ferrous scrap from Japan over the geological advantage.
Reports suggested that although Japanese scrap price is increasing but it is still comparatively lower than USA scrap prices, so the company managed to bid higher than the bids by other South Korean mills.
Imported scrap prices are increasing amid bullish market sentiments. Market participants expect that prices are likely to increase further as Japanese traders would not accept any lower prices than that of Hyundai Steel offering now.
Some participants believe that there is a consistent demand for rebar and elevated coking coal prices may impact on steel production through blast furnace route. This may direct steel makers to shift to electric arc furnace which will keep scrap requirement on higher edge.
Supply of ferrous scrap is expected to be even tighter in upcoming days as Japanese mills have started to collect H2 scrap after holidays.
Tokyo Steel also raised H2 scrap buying prices –
Japan’s leading steel mill, Tokyo Steel Manufacturing, has also raised its scrap buying prices from 18 Aug’17 at its all works in Japan by USD 9 /MT (Yen 1000/MT).Tokyo steel operates with Tahara,Okayama,Kyushu and Utsunomiya plants and Takamatsu steel center.
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