Major South Korean steel producer Hyundai Steel has announced its new bids for Japanese scrap, lowering them by JPY 1,500/mt ($14/mt) this time, seeing more pessimistic sentiment in the scrap market in Asia.
The new bid for H2 scrap from Hyundai Steel is at JPY 42,000/mt ($387/mt) FOB, versus JPY 43,500/mt ($401/mt) FOB voiced by the producer last week. Another mill from South Korea was willing to buy H2 scrap at JPY 42,500/mt ($392/mt) FOB earlier this week. This means that the market has weakened and that demand for Japanese scrap is seen only at lower prices.
The bid for H1/2 50:50 scrap is at JPY 42,500/mt ($392/mt) FOB, also down by JPY 1,500/mt.
The new price from Hyundai Steel for ex-Japan shredded scrap has been lowered to JPY 46,000/mt ($424/mt) FOB, while for shindachi and HS it has come to JPY 47,000/mt ($433/mt) FOB.
Japanese suppliers still offer HS scrap with premiums of a minimum of $20/mt to China, but demand there has slowed down recently.
The SteelOrbis reference price for ex-Japan H2 scrap has declined to JPY 42,000-44,000/mt ($387-406/mt) FOB, down by JPY 1,000/mt ($9/mt) from last week. The higher end of the range corresponds to the latest sales under the Kanto Tetsugen tender. According to sources, two out of three lots (5,200 mt each) will go to Vietnam. The trading price for both parcels is equivalent to JPY 44,060/mt FOB.