Price gap between bids for SB grade and H2 has widened to JPY 8,000/MT (USD 72) indicating steelmaker is more interested for high grade Japanese scrap over low grade.
South Korea’s leading EAF steelmaker – Hyundai Steel has presented bids for Japanese scrap today. As per updates received on this, Hyundai Steel has raised bids for medium and high grade Japanese scrap by JPY 1000/MT (USD 9). On the other hand, bids for low grade scrap like H2 and H 1&2 (50:50) remain unchanged.
Bids for medium grade scrap like HS and Shredded have increased by JPY 1000/MT to JPY 38,000/MT (USD 344) levels and for high-grade scrap Shindachi Daichibara (SB) to JPY 41,000/MT (USD 371), FoB Japan.
Bids for special grade H2 remain unchanged since last three weeks’ time at Japanese Yen 33,000/MT (USD 298) on FoB Japan basis. The steelmaker did not place bid for H 1&2 (50:50) scrap this week owing to considerable inventories and ample contracts of low-grade scrap, along with easier and cheaper availability of low grade domestic scrap.
Hyundai Steel is the largest buyer of Japanese scrap and imports monthly around 200,000-250,000 MT. Its import bidding is considered as the major indicator of the market direction in South East Asia.
Hyundai Steel heard to have secured 50,000 MT USA origin HMS 1 bulk scrap cargo at USD 357/MT,CFR. Thus, prices for USA HMS 1&2 (80:20) have moved down by USD 5-7/MT, CFR South Korea in a weeks’ time. After concluding Russian A3 grade scrap contract last week, Hyundai Steel has also booked around 20,000 MT of H2 at JPY 33,000/MT, FoB Japan.
South Korean steel mills raise domestic scrap price – After witnessing a situation of weak demand and dropped prices for almost one months’ time, South Korean domestic scrap prices have turned upward amid improving demand from leading steelmakers. Recently, steelmakers like Hyundai, Dongkuk, Welcome, YK and Korea Steel have hiked domestic scrap purchase prices by KRW 5,000-15,000/MT (USD 5-13).
Japanese scrap exporters turn active – Japanese scrap suppliers have turned active as South Korean steel mills have started accepting increased prices over an optimism on finish steel demand in the country again. In the beginning of the week, importers booked 3000-5000 MT H2 at JPY 33,300/MT, FoB Japan.
Now average H2 scrap export offers from suppliers assessed in the range of JPY 33,500-34,500/MT, FoB for Kanto and Kansai regions in Japan. While traders are paying around JPY 33,000/MT on FAS basis to collect scrap to export from eastern Japan.
Japan’s domestic scrap prices continue downtrend for the third week – According to price indices reported by Japan Iron and Steel Association, domestic scrap prices continue downward for a successive third week in Japan. The average price index for H2 scrap stood at JPY 33,000/MT (USD 298) down by JPY 100/MT on W-o-W basis.
For Kanto region, H2 assessed at JPY 33,800/MT (down JPY 600/MT W-o-W) and for central region price index assessed at JPY 31,700/MT (stable W-o-W) respectively. Japan’s leading EAF mini-mill – Tokyo Steel fetches H2 scrap at JPY 35,500/MT (USD 321) for Utsunomiya and JPY 35,000/MT at Tahara works. Which may witness the impact of Hyundai steel’s bid in upcoming days.
– Inputs from Steel Daily
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