As the local Japanese scrap market continues its uptrend, South Korean producers are also raising their bids for Japanese scrap. Market players believe that another increase may be announced by South Korean mills this week “because Tokyo steel raised its list price by JPY 1,000-2,000/mt ($9-17/mt) effective from February 15.” A Japanese source stated that they expect South Korean mills to increase their bids in line with the rises announced by Tokyo Steel.
South Korean producer POSCO has raised its bids for Japanese HS scrap at JPY 66,000/mt ($573/mt) CFR, JPY 2,000/mt ($17/mt) higher than its previous bid announced on January 28. The freight between South Korea and Japan is around JPY 3,500-4,000/mt ($30.4-34.7/mt). As SteelOrbis reported on February 10, Hyundai’s bids for HS scrap were at JPY 61,000/mt ($530/mt) FOB, its bids for shredded scrap were at JPY 59,500/mt ($517/mt) FOB and its bids for shindachi bara grades were at JPY 61,000/mt ($530/mt) FOB.
Meanwhile, another South Korean mill SeAH Besteel has announced its bids at JPY 65,000/mt ($564/mt) CFR for shindachi and at JPY 62,500/mt ($543/mt) CFR for shredded scrap. Since January 28, the producer increased its bids for the grades in question by JPY 1,500/mt ($/mt) and JPY 1,000/mt, respectively.
Additionally, South Korean mills are still increasing their domestic scrap procurement quotations. Hyundai announced that it will increase its weight A scrap prices at its Incheon and Dangjin plants by KRW 10,000/mt ($8/mt) from February 15, and with this move Hyundai’s prices will consolidate at 655,000/mt ($547/mt). Dongkuk will also increase its prices for its Puhang plant by KRW 10,000/mt ($8/mt) and will increase its prices by KRW 15,000/mt ($13/mt) for Incheon, and so its general range for weight A scrap is now at KRW 655,000-670,000/mt ($547-559/mt).