Despite the recent increases in the Japanese local and export scrap markets, S. Korean steel mills have returned to the market on Thursday with Hyundai Steel announcing lower bids for Japanese scrap, while POSCO asking for the same price as last week, SteelOrbis learned on July 13.
Hyundai Steel has issued its new bid for Japanese H2 grade scrap at JPY 47,700/mt ($343/mt) FOB, which is JPY 500/mt below the level seen late June. Taking into consideration the recent appreciation of the Japanese yen, dollar-based prices are $4/mt lower compared to last week, but $6/mt higher than that in purchases in late June. The buyer’s bid for H1/2 (50:50) is at JPY 48,200/mt ($347/mt) FOB.
HS price of Hyundai Steel has also lost JPY 500/mt to JPY 52,500/mt ($377/mt) FOB, while bids for shredded scrap have come to JPY 51,500/mt ($370/mt) FOB.
“I don't think that Japanese suppliers will be very eager to sell. Japanese domestic prices for H2 are JPY 49,000-50,000/mt DDP, which is higher than Hyundai's bid price and scrap generation is less during the summer season in Japan,” a Japanese trader commented. At the same time, the mill’s representative said that early this week there were plenty of offers, so bids have been announced at lower level. Nevertheless, it is still unclear how much tonnage the producer has managed to book.
The SteelOrbis reference price for Japanese H2 scrap has been widened downwards to JPY 47,700-50,740/mt ($343-365/mt) FOB versus JPY 49,000-50,740/mt ($345-357/mt at the exchange rate of $1 = 140.038) FOB on Tuesday this week.
At the same time, another S. Korean mill POSCO has announced its bids for HS and shindachi stable at JPY 56,000/mt ($403/mt) CFR or JPY 53,000/mt ($381/mt) FOB, but with the dollar equivalent is up by $9-10/mt from the previous levels. Shredded scrap bid is at JPY 55,500/mt ($399/mt) CFR.
Indications for US West Coast bulk cargoes to South Korea are still at $400/mt CFR, but bids would be at least $20/mt lower. There has been information that US suppliers have chosen to sell to Bangladesh instead with HMS I/II (80:20) scrap priced at $400-405/mt CFR.
$1 = JPY 139.065
