Leading South Korean steelmaker Hyundai Steel has announced its new bid prices for ex-Japan scrap, hiking them by JPY 3,000-4,000/mt ($28-37/mt) compared to the previous levels voiced by the producer on March 25, but almost stable from the latest deals to S. Korea earlier this week.
The bid of Hyundai Steel for H2 scrap is JPY 43,000/mt ($395/mt) FOB, up by JPY 3,000/mt from the previous level in late March, but stable compared to Daehan’s purchase of H2 done earlier this week. The deal signed by Daehan has been reported at JPY 47,000/mt CFR, which translates to just JPY 43,000/mt FOB due to increased freight rates. “This is a very low level for us. We see the reasonable price starting from JPY 44,000/mt [$404/mt] FOB,” a seller said.
As a result, the SteelOrbis reference price for Japanese H2 scrap has returned to last week’s level of JPY 43,000-44,500/mt ($395-409/mt) FOB, amid expectations of better demand. “Prices for end users [on CFR basis] are increasing due to crazy freight rates: FOB prices have a lack of support,” a source said.
Bids of Hyundai Steel for shredded and HS have also increased by JPY 3,000/mt from the previous levels, to JPY 47,000/mt ($432/mt) FOB and JPY 48,000/mt ($441/mt) FOB respectively. But the competition in the higher grades scrap segment has been higher. Demand in the local Japanese market has been on the rise, especially for higher grades. Moreover, China is slowly coming back to the market with higher bid prices. The latest Hyundai Steel bid for HS is equivalent to around $485-490/mt CFR, while traders are reporting a deal recently signed to China at $495/mt CFR. Most offers from China are at $505-510/mt CFR and in new trades suppliers will target not below $500/mt CFR.
The new price of Hyundai Steel for ex-Japan shindachi has been announced at JPY 49,000/mt ($451/mt) FOB, rising by the highest margin of JPY 4,000/mt ($37/mt) compared to the previous level.