Major South Korean steel producer and steel scrap importer Hyundai Steel has changed its method of buying ex-Japan scrap. Previously, the mill used to purchase on FOB basis, while now it has started to buy on CFR basis, but still in Japanese currency.
Some tonnages from two Japanese regions have been sold to Hyundai Steel at about JPY 26,400/mt ($241/mt) CFR, which correspond to JPY 24,000/mt ($219/mt) FOB, SteelOrbis has been informed. This means that export prices from Japan have lost another JPY 500/mt ($4.6/mt) from the previous level. Moreover, today, Wednesday, February 5, Hyundai Steel held an open tender for purchases of Japanese scrap again, with the bid due to be released tomorrow, according to market insiders.
“They started a new buy style, where only those who have the yard can sell, not traders,” an Asian source said.
