Following the Kanto Tetsugen tender closed at the highest bid of JPY 49,195/mt ($449/mt) FAS, South Korean producer Hyundai Steel has also increased its purchase quotations for Japanese scrap.
Hyundai Steel has raised its quotations by JPY 1,000/mt ($9.14/mt) as compared to its previous list prices published by SteelOrbis on June 3. As a result, their purchase price for H2 grade scrap is now standing at JPY 47,000/mt ($430/mt) FOB, while HS and shindachi prices have also been increased, to JPY 52,000/mt ($475/mt) FOB and JPY 53,000/mt ($484/mt) FOB, respectively. Additionally, Hyundai has announced its H1/2 grade scrap price at JPY 47,500/mt ($434/mt) FOB and its shredded price at JPY 51,000/mt ($466/mt) FOB.
Japanese scrap sellers are more bullish at the moment, targeting JPY 48,000-50,000/mt ($439-457/mt) FOB for H2, and so market players are not sure how much ex-Japanese scrap tonnage Hyundai Steel will manage to buy. One source defined the trend of the market as “ambiguous”. Hyundai is expected to purchase some tonnages obviously at the abovementioned levels, though the total tonnage will be more significant for the future trend of the market.
$1 = JPY 109.39