South Korea: Hyundai Steel Raise Scrap Purchase Bids Further by USD 5/MT

After raising scrap purchase prices sharply by almost JPY 3,000/MT (USD 27) before a week’s time, Hyundai Steel has further increased Japanese scrap purchase price by USD 4.5/MT in its latest bids.

South Korea’s leading electric arc furnace steel maker – Hyundai Steel has raised its import prices for Japanese H2 ferrous scrap in its latest bid. The bid prices on 28th Nov for Japanese H2 scrap were kept at JPY 34,000/MT (USD 305) FoB Japan, against last bid of JPY 33,500/MT (USD 300/MT) made in earlier Nov’17.

Presently, prices for other grades of scrap are accessed as H1&2 (50:50) at JPY 34,500/MT(USD 310), HS at JPY 37,000/MT(USD 332), SD scrap at JPY 37,000/MT and SB scrap at JPY 38,000/MT while Sindachi Press at JPY 39,000/MT(USD 350), FOB Japan respectively.

Japan’s domestic scrap demand remains strong as this is a peak construction season in Japan. Japanese traders justify the strong demand for scrap in the domestic market by incremental billet exports from Japan. Following this, the Hyundai Steel would have increased their domestic scrap purchases.

Tokyo Steel in Japan had already raised scrap purchase prices consecutively sixth time in Nov’17. On 22 Nov’17 prices were hiked further at its all works by USD 5/MT (JPY 500).

Price list for ferrous scrap in Japan –

1. H2 for Tahara Plant, Tokyo Steel Japan at JPY 35,500/MT, at works gate
2. H2 for Okayama, Kyushu & Utsunomiya works of Tokyo Steel Japan at JPY 34,500/MT, at works gate
3. Shredder A for Tahara Plant, Tokyo Steel Japan at JPY 36,000/MT, at works gate
4. Shredder A for Okayama Plant, Kyushu & Utsunomiya works of Tokyo Steel Japan at JPY 35,000/MT, at works gate
5. Offers assessed for H2 at JPY 34,000/MT, FOB Japan
6. Offers assessed for New Cutting Press at JPY 36,800/MT, FOB Japan

Trade wise –

1. Japanese H2 grade scrap offers assessed around USD 335-337/MT CFR Vietnam, which was seen at USD 325-330/MT, last week.
2. South Korea’s special steel manufacturer SeAH has bought some parcel from Japan of busheling at around JPY 41,500/MT CFR and market expects this prices to go up to JPY 44,000/MT CFR.