The major scrap importer in South Korea, Hyundai Steel, has announced its new bid prices for Japanese scrap on March 4 at a higher price level. Moreover, local purchase prices in Japan have kept increasing, which has also boosted ex-Japan scrap prices.
Hyundai Steel has announced a bid for ex-Japan H2 scrap at JPY 43,500/mt ($405/mt) FOB today, up by JPY 1,000/mt ($9/mt) from a contract signed by another producer last week and up by JPY 3,000/mt ($28/mt) compared to the previous Hyundai bid on February 18.
The price for H1/2 50:50 has been increased to JPY 44,000/mt ($410/mt) FOB, also up by JPY 3,000/mt from the company’s previous bid. A new bid for ex-Japan shredded scrap is at JPY 47,500/mt ($442.5/mt) FOB, while for shindachi it has reached JPY 48,500/mt ($452/mt) FOB.
Only for Japanese HS scrap, the Hyundai Steel’s bid has increased at a higher pace - by JPY 4,000/mt ($37/mt) compared to the previous level to JPY 48,500/mt ($452/mt) FOB. “China is active and most HS volumes are offered there,” a Japanese trader said. According to sources, the latest bid from Hyundai for HS scrap is at least $20/mt below the tradable value for this grade in China on CFR basis, at $500/mt.
The SteelOrbis reference price for H2 scrap has been increased to JPY 43,500-44,500/mt ($405-415/mt) FOB, up by 500-1,000/mt ($5-9/mt) from early this week and up JPY 1,000/mt ($9/mt) from last week. The lower end of the range corresponds to the latest bid from S. Korea, while the tradable value to Vietnam is up to the higher end of the range. Sources have reported about a deal equivalent to around $455/mt CFR or slightly higher for H2.
The main Japanese EAF-based steel producer, Tokyo Steel, has increased its local scrap purchase prices further on March 4. The H2 price at Tokyo Steel’s Tahara and Utsunomiya plants have increased by JPY 1,000/mt ($9/mt) to JPY 42,500/mt ($396mt). At Okayama, Kyushu and Takamatsu, they have added JPY 500/mt ($5/mt) to 41,500/mt ($387/mt), JPY 41,000/mt ($382/mt) and JPY 40,500/mt ($377/mt), respectively. All prices are delivered and effective from March 5.