South Korean steelmakers lowered their scrap purchase bids again for Japanese scrap this week. In bid presented by Hyundai Steel for Japanese H2 scrap procurement, the price moved down by around JPY 1000/MT (USD 9) to JPY 21,000/MT (USD 190) FoB Japan, as compared to JPY 22,000/MT bids presented on 12th Mar’20.
Notably, Japanese scrap prices fell below JPY 22000/MT (USD 196)level, for the first time in three years, since Hyundai steel’s previous lowest bid was reported in the first week of November 2016.
The bid prices for other grades were set at JPY 22000 /MT (USD 196) for H1 scrap, shredded and Shindachi Bara while the bid for HS stands at JPY 23,500/MT (USD 213).
On the other hand- the volatile currency exchange rate between Japanese Yen and Korean Won has put pressure on Hyundai steel to keep its bids at a low level, despite sheer resistance from Japanese suppliers.
Currently, the Japanese Yen stands at 110.28 against USD as on 24th Mar’20, while 11.3 against Korean Won.
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