Bid prices for Japanese scrap in South Korea have lost another JPY 1,000/mt ($9/mt) this week and some deals have been done at lower levels. But suppliers have started to resist any further declines and refuse to sell at reduced prices, saying that the local market situation is not negative and that a rebound should be seen in Asia soon, SteelOrbis has learned from market sources.
Hyundai Steel has announced its new bid for ex-Japan H2 at JPY 46,000/mt ($419) FOB, which is JPY 1,000/mt ($9/mt) below the level in a deal to another S. Korean mill last week. But at the same time, this price is in line with the bid from Daehan Steel made earlier this week. In total, Daehan Steel bought 10,000 mt of H2 at this price level, and Japanese suppliers were mostly reluctant to sell at this low level. “This level is the bottom because Tokyo bay FAS prices have already hit the bottom,” a Japanese trader said.
Though Asian buyers are bearish, Japanese suppliers have been asking for much higher prices, with most offers reported at JPY 48,000-49,000/mt ($437-446/mt) FOB. No new deals for H2 have been reported to Vietnam this week and sellers expect bids will improve in the near future, taking into account better sentiment in China's billet market.
The SteelOrbis reference price for ex-Japan H2 scrap has been lowered by JPY 500/mt ($4.5/mt) since last week to JPY 46,000-46,500/mt ($419-423/mt) FOB.
The new bid price of Hyundai Steel for H1/2 scrap is at JPY 46,500/mt ($423/mt) FOB, which has already been confirmed in a small-volume deal to S. Korea this week.
The price level for shredded scrap has been announced at JPY 50,000/mt ($455/mt) FOB, while that for HS and shindachi has been issued at JPY 51,000/mt ($463/mt) FOB and JPY 52,000/mt ($473/mt) FOB, respectively. All bid prices of Hyundai Steel are JPY 3,000/mt ($27/mt) below the previous levels voiced on May 20.