While South Korean steelmaker Hyundai Steel has stayed away from the import scrap market this week, another major producer in the country, POSCO, has announced bids for higher grade Japanese scrap, indicating a $8/mt increase. However, SteelOrbis hears that Japanese suppliers are not in a hurry to sell, and that most of them will wait for the next Kanto Tender to be held on March 9. In the Vietnamese scrap market, the number of offers has increased, but Vietnamese buyers still state that they cannot accept higher levels. According to a Vietnamese source, “There is demand, but not as strong at the offered price of scrap, and so market is very quiet, with just a few deals done.”
SteelOrbis has learned that POSCO has shared a bid for Japanese HS grade scrap this week at JPY 59,000/mt ($433/mt) CFR or JPY 55,800 ($409/mt) FOB. The previous bid from Hyundai Steel for Japanese HS scrap was announced on February 22 at JPY 54,000/mt ($401/mt with the exchange rate at 134.77) FOB.
POSCO’s shindachi scrap bids were at JPY 58,000/mt ($426/mt) CFR or JPY 54,750/mt ($402/mt) FOB.
A Vietnamese buyer concluded a deal for Japanese shredded scrap earlier this week at $460/mt CFR. Vietnamese buyers are aiming for $440-445/mt CFR for ex-US HMS I/II 80:20 scrap, while their ideas for Japanese H2 grade are standing at $430-435/mt CFR. However, offers are higher than buyers’ targeted prices.
Offers to Vietnam for Japanese H2 grade scrap are at around $450/mt CFR, while ex-US HMS I/II 80:20 scrap is offered closer to $455/mt CFR.
As of today, March 3, Tokyo Bay FAS-based prices for H2 grade scrap have recovered back from the range of JPY 52,500-53,000/mt ($389-393/mt) to JPY 53,000-53,500/mt ($389-392/mt). This new level signals JPY 54,000-54,500/mt ($396-400/mt) FOB for this grade, while dollar-based prices have remained stable week on week amid the depreciation of the Japanese yen.
As a result, the SteelOrbis reference prices for ex-Japan H2 scrap have changed from JPY 51,000-54,000/mt ($378-403/mt) FOB to JPY 51,000-54,500/mt ($374-400/mt) FOB week on week. Currently, the lower end is represented by Hyundai Steel’s bid for Japanese scrap, while the upper end is represented by Tokyo Bay export prices given the lack of a fixed price in Vietnam.
$1 = JPY 136.34