South Korean producer POSCO has shared bids for Japanese scrap, increasing them by JPY 1,000/mt as compared to the levels recorded in the middle of last month. However, the Japanese yen has depreciated sharply during this period and the increase in price on yen basis has meant a drop in the dollar-based price. Market sources report that the declining trend in the local South Korean scrap market has come to an end and that domestic scrap prices are also moving up. As a result, South Korean producers have been showing interest in Japanese scrap for some time now, particularly for higher grades such as HS and shredded.
SteelOrbis has learned that POSCO has shared bids for Japanese HS scrap at JPY 59,000/mt ($399/mt) CFR, JPY 1,000/mt higher than the producer’s previous bids but $10/mt lower on dollar-basis given the depreciation of the Japanese yen. This level indicates FOB-based prices for Japanese HS scrap are at around JPY 56,061/mt ($379/mt), with freight being around $20/mt. Market sources report that this level is similar to the bids previously announced by Daehan Steel.
POSCO has also increased its bids for Japanese shredded scrap by JPY 1,000/mt to JPY 58,500/mt ($395/mt) CFR, with another $10/mt drop observed in the dollar-based price. This level indicates FOB-based prices for Japanese shredded scrap are at around JPY 55,472/mt ($375/mt).
$1 = JPY 147.95