South Korean producer Hyundai Steel is keeping away from scrap imports amid the strong domestic scrap flow in the country. A source stated, “Local scrap prices in South Korea had declined sharply after the Fukushima earthquake in 2011. People remember that. As a result, South Korean suppliers have reduced their prices to increase sales after the earthquakes in Turkey.” Despite the decreases seen in Turkey’s deep sea scrap bookings, scrap suppliers’ offers to Asia remain strong. “We hear that Bangladesh bought some scrap and India may be back for more purchases,” a source reported. Meanwhile, due to the strong demand in Japan, Japanese exporters are still hopeful for their sales abroad. SteelOrbis observes that some South Korean mills do not want to take risks and “mess up their own local scrap market.” Meanwhile, Daehan will open a tender tomorrow for Japanese scrap.
On February 9, the Kanto tender FAS prices translated to JPY 54,362/mt or $415/mt FOB with the exchange rate at 130.84 to a dollar. On February 2, Hyundai Steel shared a bid for Japanese H2 grade scrap at JPY 52,000/mt ($406/mt with exchange rate at JPY 128,31) FOB.
As of today, February 16, Tokyo Bay FAS-based prices for H2 grade scrap are at JPY 53,000-53,500/mt ($396-400/mt). These new levels signal JPY 54,000-54,500/mt ($403-407/mt) FOB for this grade.
Despite the increases observed in offer prices, the SteelOrbis reference prices for ex-Japan H2 scrap have remained stable at JPY 53,000-54,000/mt ($396-403/mt) FOB. The depreciation of the Japanese yen has resulted in a $9-10/mt decrease in dollar-based quotations week on week.
Tokyo Bay FAS prices for HS grade scrap are now in the range of JPY 55,000-56,000/mt ($411-418/mt), while for shindachi scrap the price stands at JPY 54,000-55,000/mt ($403-411/mt).
$1= JPY 133.86
