Hyundai raises bid post-Japan’s Kanto scrap tender result

South Korea’s leading steel mill, Hyundai, raised bids for Japanese scrap immediately after conclusion of the monthly Kanto scrap export tender. Around 7,500 tonnes (t) of Japanese H2 scrap were awarded at an average price of JPY 49,195/tonne (t) ($450), FAS basis in Japan’s monthly Kanto Tetsugen ferrous scrap export tender concluded today, for June’21, SteelMint learnt from its trade sources.

The average bid price increased by JPY 362/t ($3) against last month’s tender concluded at JPY 48,833/t basis. However, the highest bid was marginally lower by JPY 84 ($1) against the May’21 tender, which was notably the highest price ever recorded by SteelMint. According to market sources, the highest bid has been concluded for Vietnam.

Around 15,000-20,000 t of H2 scrap is sold monthly, through the Kanto tender auction and the FoB prices for the same are higher by around $9-10/t vis-a-vis FAS. The tender serves as a benchmark for the Japanese scrap export market.

Hyundai Steel lifts bid by JPY 1,000/t: South Korean steel major Hyundai Steel today, 9 Jun’21, placed bids for Japanese ferrous scrap that were higher by JPY 1,000/t ($9) for all grades, as per SteelMint sources. Bids for H2 are now at JPY 47,000/t ($429), FoB. The steel maker’s bid has increased against its last bid placed on 3 Jun’21.

Chinese mills raise bids for Japanese scrap: With today’s scrap tender outcome, bids for Japanese scrap have increased further this week. Chinese scrap buyers have raised bids for Japanese HRS101-grade by a further $10/t to $530/t levels, with  offers at around $550/t . However, the disparity between bids-offers weakened Chinese mills scope for finalising deals with Japanese suppliers.

Additionally, Bangladesh, and Vietnam-based mills are likely to raise bids, since the last few were comparatively lower.

Japan’s domestic scrap price constant: Japan’s leading EAF mill, Tokyo Steel, kept its scrap purchase prices unchanged for yet another week. The company continues to pay JPY 51,500/t ($473/t) for the Tahara plant and JPY 48,000/t ($440/t) for its Utsunomiya works.