Following increased bids for Japanese H2 scrap in recent trade deals from few South Korean steel mills, Hyundai Steel has raised bids for Japanese scrap recently by JPY 500/MT.
South Korea’s leading electric arc furnace steelmaker – Hyundai Steel has raised its import prices for Japanese ferrous scrap by Japanese Yen 500/MT (USD 5) w.e.f today (09 Mar’18). Its latest bid put for H2 grade scrap was at JPY 37,000/MT (USD 347), FoB Japan against its last bid reported on 05th Mar’18 at JPY 36,500/MT (USD 342), FoB Japan.
New prices for other grades of scrap are assessed at JPY 37,500/MT (USD 351) for H1/2 (50:50), at JPY 40,00/MT (USD 375) for both Shredded and HS scrap, While Shindachi scrap at JPY 42,000/MT (USD 394) and Shindachi Press scrap at JPY 43,000/MT (USD 403) on FOB Japan basis respectively.
Prior to this, the steelmaker increased bids for Japanese scrap sharply by JPY 1,000 (USD 9) on 05th Mar’18. Thus prices have increased by JPY 1,500/MT (USD 24) in last two consecutive price hikes recorded in a weeks’ time in this month.
Hyundai Steel is one of the largest buyers of Japanese scrap. According to market participants company imports yearly around 500,000-600,000 MT scrap from Japan.
Japanese Yen (JPY) has depreciated in last three days’ time. Exchange rate (USD/JPY) is at 106.7 today as against 105.5 on 7th Mar’18. However, Yen had appreciated by 5.5% in last two months’ time which was trading at 112.6 against USD then.
High domestic and export scrap prices in Japan –
The average bids recorded in Japan’s monthly scrap export tender Kanto Tetsugen for Mar’18 was at JPY 37,520/MT (USD 352), FAS. The average bids fetched for total 20,000 MT of H2 scrap increased significantly by JPY 2,770/MT (USD 26) on M-o-M basis as against the average bids at JPY 34,750/MT (USD 326) in Feb’18.
Generally, Hyundai steel revises its bid after ‘Kanto Tetsugen’ tender but this surprisingly time it increased bids for Japanese scrap even before tenders’ result out. This was because of a large number of contracts.
Recently a South Korean steel mill purchased Japanese H2 scrap at JPY 36,800/MT, FoB Japan basis. Japanese scrap suppliers are now eyeing for JPY 37,500/MT, FoB levels for H2 scrap owing to strong domestic demand.
Strong global scrap prices –
The price assessment of USA HMS 1&2 (80:20) ascended by around USD 7-8/MT W-o-W in recent deals to USD 376/MT, CFR Turkey against the last report of USD 368/MT, CFR.
South Korean importers heard USA origin HMS 1&2 (80:20) offers exceeding USD 405/MT, CFR South Korea while Hyundai steel mill heard to have fetched Russian A3 grade at around USD 390/MT, CFR.
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