South Korea: Hyundai Steel Slashes Bids for Japanese Scrap by USD 9/MT

Amid sharply falling global scrap prices along with sinking domestic scrap buying bids by major steelmakers, South Korean leading EAF steelmaker Hyundai Steel has further reduced Japanese imported scrap bids for the third time since mid of Jan’18.

South Korea’s leading electric arc furnace steelmaker – Hyundai Steel has further reduced its import prices for Japanese ferrous scrap by Japanese Yen 1000/MT (USD 9) today (6th Feb’18). Its latest bid put for H2 grade scrap was at JPY 34,500/MT (USD 317), FoB Japan against its last bid reported on 30th Jan’18 which was at JPY 35,500/MT (USD 326), FoB Japan.

New prices for other grades of scrap are assessed for H1/2 (50:50) at JPY 35,000/MT (USD 321), for both Shredded and HS scrap at JPY 37,500/MT (USD 344), Shindachi scrap at JPY 39,500/MT (USD 363) while Shindachi Press scrap at JPY 40,500/MT (USD 372) on FOB Japan basis respectively.

Prior to this, the steelmaker reduced bids for Japanese scrap successively on 22nd and 30th Jan’18 by JPY 1000/MT (USD 9) respectively leading to total fall of JPY 3000/MT (USD 28) now, after peak achieved at JPY 37,500/MT in the bids placed on 15th Jan’18 for H2 grade scrap in Japan.

According to sources, Hyundai Steel possibly has cut scrap purchase prices looking over ample inventories available for work with before moving to New Year holidays and expecting fall in bids for Japan’s monthly scrap export tender Kanto Tetsugen for Feb’18. South Korean new lunar year will start from 16 Feb’18.

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. While imports total 200,000-250,000 MT scrap monthly.

Japan’s monthly scrap export tender Kanto Tetsugen is scheduled on 09th Feb’18. Most of the market participants are waiting for this tender and anticipating the softening of prices for this month. Monthly around 20,000 MT H2 scrap gets auctioned through Kanto Tetsugen in Kanto region of Japan.

Sentiments in global ferrous scrap market have weakened resulting in a decline in offers. Last week imported scrap prices in Turkey reported a drop of USD 10-12/MT, W-o-W.