South Korean producers have been increasing both their domestic and import scrap purchase prices over the past week. However, it is yet to be seen whether Japanese suppliers will accept Hyundai Steel’s new bids announced today, January 13, as the downtrend in the Japanese scrap market seems to be coming to a halt.
As compared to the levels announced on December 23, Hyundai Steel has increased its bid for H2 grade by JPY 2,000/mt ($17.4/mt) to JPY 49,000/mt ($428/mt) FOB. The level in question is still lower than domestic H2 grade scrap prices in Japan, which stand in the range of JPY 51,000-54,000/mt ($445-471/mt) delivered.
Hyundai’s bids for HS scrap have moved up by JPY 4,000/mt ($34.9/mt) to JPY 58,000/mt ($506/mt) FOB. On January 6, POSCO issued its bid for ex-Japan HS scrap at JPY 58,000/mt ($506/mt) CFR.
Having stayed away from shredded and shindachi bara scrap purchases on December 23, Hyundai has bid for these grades today, January 13, at JPY 56,000/mt ($489/mt) and JPY 57,000/mt ($499/mt), respectively, both on FOB basis.
Meanwhile, SteelOrbis has learned that Russian A3 grade scrap offers to South Korea are at $515/mt CFR. Whether this offer from sellers will gain acceptance remains to be seen, though the price level is significantly higher than Hyundai’s bids for Japanese H2 grade.
As a result, the SteelOrbis reference price for export H2 scrap from Japan is at JPY 49,000-51,000/mt ($411-442/mt) FOB. The lower end of the range has been stable since January 10, while the upper end has increased by JPY 1,000/mt ($9/mt).
On the other hand, Hyundai Steel and Dongkuk Steel have raised their domestic scrap prices for weight A scrap purchases by KRW 15,000/mt ($12.6/mt) as of today. As a result, their prices are now at KRW 620,000-630,000/mt ($523-532/mt) and KRW 620,000-635,000/mt ($523-536/mt), respectively. Additionally, SeAH Besteel will increase its domestic saengchol grade prices by KRW 15,000/ mt ($12.6/mt) to KRW 699,000/mt ($590/mt).
$1 = JPY 114.53
$1 = KRW 1,184.43