Having remained out of the market for a month, South Korean steel producer Hyundai Steel has returned and shared its bids for Japanese scrap. The levels announced indicate a $8/mt increase from the South Korean producer, supporting the idea that Japanese scrap is gaining ground with the help of the domestic push.
Hyundai Steel has announced its new bid for Japanese H2 grade scrap at JPY 48,200/mt ($342/mt) FOB, up by JPY 2,400/mt as compared to the levels recorded on May 18. Considering the fluctuation of the JPY-US dollar exchange rate, the dollar-equivalent price has gone up by $8/mt. The buyer’s bid for H1/2 (50:50) is at JPY 48,700/mt ($346/mt) FOB, rising by the same margin of JPY 2,400/mt or $8/mt since May 18.
The new HS price issued by Hyundai Steel stands at JPY 53,000/mt ($376/mt) FOB, up by JPY 3,200/mt or $13/mt. The highest margin of increase has been for shredded scrap, with the bid moving up by JPY 3,700/mt or $17/mt to JPY 52,000/mt ($369/mt) FOB.
For the ex-US scrap segment, SteelOrbis hears that suppliers are still holding their ground with offers for ex-US HMS I scrap at around $400-405/mt CFR. A South Korean source said that US-based suppliers are reporting lower scrap flow, adding “But I do not see any significant improvement in the market, so sooner or later we’ll see some price drop.”
As of today, June 16, Tokyo Bay FAS-based prices for H2 grade scrap are at JPY 48,000-49,500/mt ($341-351/mt). While prices on Japanese yen basis have increased by JPY 1,000/mt on the lower end and by JPY 500/mt on the upper end, dollar-based prices have only moved up on the lower end by $4/mt and have remained stable otherwise due to the depreciation of the yen. This new level signals JPY 49,000-50,500/mt ($348-358/mt) FOB for this grade.
As a result, the SteelOrbis reference prices for ex-Japan H2 scrap have settled at JPY 48,200-49,500/mt ($342-351/mt) FOB, down by JPY 600/mt on the lower end and up by JPY 300/mt on the upper end, while the dollar-based range has declined by $2-8/mt. The lower end of the range corresponds to Hyundai Steel’s bids, while the upper end is now represented by Japanese scrap offers to Taiwan, supported by the Tokyo Bay FAS prices.
Tokyo Bay FAS prices for HS grade scrap are now in the range of JPY 52,500-53,500/mt ($372-379/mt), while prices for shindachi scrap are at JPY 50,000-51,500/mt ($355-365/mt).
$1 = JPY 141.00