Following continuous price cuts in Japan’s domestic scrap prices, South Korea’s largest scrap importer Hyundai Steel has lowered bids for Japanese scrap successively for the second week.
South Korea’s leading EAF steelmaker – Hyundai Steel has presented bids for Japanese scrap today for this week. As per updates received on this, Hyundai Steel has lowered bids for H2 grade by Yen 500/MT (USD 5). Now the H2 bid is assessed at Japanese Yen 33,000/MT (USD 300) against its last bid placed last week (14th June) at JPY 33,500/MT, FoB Japan.
The steelmaker also reduced the bids for other grades of Japanese scrap by JPY 500/MT as against last bids. Bids for medium grade scrap like HS and Shredded assessed at JPY 37,000/MT (USD 336) and for high-grade scrap Shindachi Daichibara (SB) at JPY 40,000/MT (USD 364), FoB Japan.
Hyundai Steel is the largest buyer of Japanese scrap and imports monthly around 200,000-250,000 MT scrap. Hyundai Steel’s import bidding is considered as the major indicator of the market direction in South East Asia. The increased spread between bids for high grade and H2 scrap indicate steel maker’s higher inclination towards high-grade scrap purchases as compared to earlier months.
Japan’s domestic scrap prices continue downtrend – Japan’s leading EAF mini-mill – Tokyo Steel has announced a third successive price cut yesterday for domestic scrap purchase in last one weeks’ time. The steel manufacturer cut prices by JPY 500/MT (USD 5) for low and medium grades of scrap at Utsunomiya work while for all grades of scrap at Tahara plant. Now H2 scrap fetches at JPY 35,500/MT (USD 323) for Utsunomiya and JPY 35,000/MT at Tahara works.
South Korean steel mills continue booking bulk scrap vessels from USA – As per Steeldaily’s report, two bulk vessels booked by Dongkuk Steel from USA are expected to arrive shortly. A vessel carrying 33,000 MT is expected to berth in late June while another 50,000 MT bulk vessel expected to berth in early July at Incheon steelworks. While Hyundai Steel has booked a large vessel for August shipment. With the arrival of these vessels, scrap inventories with steelmakers are likely to increase sharply impacting the demand for Japanese scrap further.
Taiwanese scrap prices turn upward following global price rise – In other major Asian scrap markets, imported scrap prices was almost stable last week. However, following price rise in Turkish market in the beginning of this week, Taiwanese scrap prices now have rebounded by USD 5-8/MT on W-o-W. Price assessment for USA origin HMS 1&2 (80:20) stood at USD 330-335/MT, CFR Taiwan. This could also reflect in rising scrap offers for other Indian subcontinental markets.
~Inputs from Steel Daily
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