Following sharp fall in bids for Japan’s ‘Kanto Tetsugen’ scrap export tender, rising scrap inventories with S. Korean EAF mills and declining domestic scrap prices in South Korea, Hyundai Steel has slashed imported scrap bids for Japanese scrap by JPY 1500/MT today.
South Korea’s leading EAF steelmaker – Hyundai Steel has cut its import prices for Japanese scrap by JPY 1500/MT (USD 14). As per latest price update today (13th Apr’18) for this week, Hyundai Steel placed bids for H2 grade scrap at JPY 33,500/MT (USD 312), FoB Japan. According to SteelMint data, the bid for H2 grade scrap made by the steel mill has dropped to nearly 5-month low as the same was seen in 20 Nov’17.
New prices for other low grades like H1/2 (50:50) are at JPY 34,000/MT (USD 317) and for both Shredded and HS prices assessed at JPY 36,500/MT (USD 340) respectively. Its latest bids presented for high-grade scrap Shindachi Daichibara (SB) presented at JPY 39,500/MT (USD 368) on FOB Japan basis respectively. While bid Shindachi Press was not presented successively for the second week over the ample inventories available in hand.
Last week Hyundai Steel lowered prices for Japanese scrap by JPY 1000/MT (USD 9) except H2 and Shindachi Press. In bids presented on 5th April, H2 scrap prices were down by JPY 2000/MT from its last bid on 23rd March. According to reports, Hyundai Steel heard have secured 50,000-60,000/MT of high-grade scrap while it didn’t fetch any H2 materials in last week’s tender. Over the large volumes of scrap inventories already available to them and accessibility of sufficient supply contracts Hyundai could have stopped purchasing H2 last week.
South Korean EAF mills reduce domestic scrap purchase price – Many of the leading South Korean steel makers like Hyundai, Dongkuk, YK, and Posco have recently reduced domestic scrap purchase prices by the range of KRW 10,000-15,000/MT (USD 9-14). Few steelmakers like Dongkuk, Posco, SeAh and Daehan in South Korea have already started allocating their inventories along with restricting scrap purchases at not more than 5,000 MT per day. These steelmakers usually limit their inventories at 30-40% of the required amount. Dongkuk steel’s inventory at Incheon plant has reached around 70,000 MT a report showed.
Japan’s domestic scrap prices tumble further – According to price Indices reported by Japan Iron and Steel Association, domestic scrap prices for this have tumbled further in Japan. The average price index for H2 scrap decreased to around JPY 32,800/MT (USD 305) down by JPY 1500/MT on W-o-W basis. For Kanto region, H2 scrap price index assessed at JPY 33,200/MT (down JPY 2100/MT W-o-W) and for Central and Kansai regions price indices moved down by JPY 1400/MT and JPY 1000/MT at JPY 32,100/MT and JPY 33,100/MT respectively.
Average EAF steelmaker’s scrap purchase prices from Tokyo, Osaka and Nagoya regions assessed at JPY 32,800/MT for H2 and at around JPY 36,800/MT for New cutting press respectively.
Trade-wise:
1. A South Korean steelmaker was heard to have booked 10,000-20,000 MT of Japanese H2 at JPY 34,500/MT, FoB Japan.
2. A steel mill from Vietnam concluded a deal for Japanese H2 at USD 345/MT, CFR Vietnam at the beginning of the week. Current assessment of H2 price is at USD 335-340/MT, CFR Vietnam.
3. USA origin bulk HMS 1&2 (80:20) offers assessed at USD 378-380/MT, CFR South Korea.
Leave a Reply