South Korea’s Hyundai Steel has announced its new bid prices for high grade Japanese scrap, which are JPY 2,000/mt ($19/mt) higher compared to the previous round of purchases in early November. Other steel mills in S. Korea have been sourcing some volumes at higher prices as well. Nevertheless, a number of Japanese suppliers are waiting for higher prices and refuse to provide any sizable volumes at the level at which South Korean buyers are bidding.
According to market sources, Hyundai Steel has voiced new bids for HS scrap at JPY 34,000/mt ($327/mt) FOB and its bids for shindachi stand at JPY 34,500/mt ($331.5/mt) FOB, both JPY 2,000/mt ($19/mt) above the previous bids reported on November 5. The company has not announced the new bids for other scrap grades, but sources have told SteelOrbis that, based on the current price level of high grade scrap from Japan, the tradable price for H2 scrap should be JPY 30,500/mt ($293/mt) FOB. This level also corresponds to the latest small-volume sales to Dongkuk Steel and POSCO.
At the same time, offers from the majority of exporters from Japan are at JPY 31,000-32,000/mt ($298-307/mt) FOB and traders said that sales volumes at below JPY 31,000/mt FOB will be very limited.
The ex-Japan H2 price level has remained at JPY 30,500-31,500/mt ($293-303/mt) FOB so far.
The indicative price level for ex-Russia A3 scrap and ex-US HMS I in South Korea are $320/mt CFR and $325-330/mt CFR, but no new bookings have been reported so far as sellers prefer to concentrate on sales to other destinations where prices are higher.