Despite the expectations of an increase in its bids for Japanese scrap, South Korean producer Hyundai Steel has kept its bids stable this week. SteelOrbis had heard that Hyundai bought approximately 40,000 mt of scrap last week after bidding following its long absence but some Japanese sources initially believed it should increase its bids for scrap this week to be able to buy higher tonnages. This belief is the result of the rising price trend observed in the local Japanese scrap market but is not met by South Korean producers yet.
Hyundai Steel has announced its new bid for Japanese H2 grade scrap at JPY 48,200/mt ($337/mt) FOB, unchanged from the levels announced on June 16. Considering the fluctuation of the JPY-US dollar exchange rate, the dollar-equivalent price has gone down by $5/mt. The buyer’s bid for H1/2 (50:50) is still at JPY 48,700/mt ($340/mt) FOB, falling by by $6/mt since June 16.
HS price issued by Hyundai Steel has remained at JPY 53,000/mt ($370/mt) FOB, while bids for shredded scrap are still at JPY 52,000/mt ($363/mt) FOB, both down by $6/mt as compared to the previous levels.
As of today June 23, Tokyo Bay FAS-based prices for H2 grade scrap are at JPY 48,500-49,500/mt ($339-346 341-351/mt). While prices on Japanese yen increased by JPY 500/mt on the lower end, dollar-based prices moved down by $2-5/mt since last week. This new level signals JPY 49,500-50,500/mt ($345-353/mt) FOB for this grade.
Tokyo Bay FAS prices for HS grade scrap are now in the range of JPY 52,500-54,000/mt ($367-377/mt), while prices for shindachi scrap are at JPY 50,000-51,500/mt ($349-360/mt).
$1 = JPY 143.23