As anticipated by market players, South Korean steel producer POSCO has cut its bids for Japanese shredded scrap. While the producer has now announced its fourth bids of the current month, the pressure on Japanese scrap is increasing. With Hyundai Steel remaining on the sidelines and Vietnam being reluctant to buy higher tonnages of scrap, Japanese scrap exporters are feeling downward pressure. Meanwhile, domestic scrap prices in South Korea have continued to move down and to support South Korean mills.
Meanwhile, SteelOrbis has learned that POSCO has shared bids for shredded scrap at JPY 55,000/mt ($392/mt) CFR or JPY 52,000/mt ($370/mt) FOB. Prices on Japanese yen basis have declined by JPY 500/mt week on week and, due to the appreciation of the yen, dollar-based prices have decreased by $5-6/mt both on CFR and FOB basis.
Also, POSCO’s bids for Japanese HS grade scrap are at JPY 56,000/mt ($399/mt) CFR or JPY 53,000/mt ($377/mt) FOB. This level is somewhat similar to Tokyo Bay FAS prices for HS grade scrap, which are now in the range of JPY 53,000-54,500/mt ($379-390/mt).
$1 = JPY 140.42