With South Korean steelmaker POSCO’s increase in its bids for Japanese scrap today, February 18, South Korean mills have increased their bids for Japanese scrap once again. Amid their efforts to increase their scrap inventory levels, this is the third price revision reported this week coming from different South Korean mills. Japanese sources believe that the price increase will continue, while one South Korean contact said he believes that prices have either reached their peak or may rise by another JPY 500-1,000/mt. Although the total tonnage sold to Hyundai at the levels producer announced yesterday is not known, SteelOrbis has learned that many suppliers have accepted the bids.
Today, February 18, South Korean producer POSCO has raised its bids for Japanese HS scrap to JPY 68,500/mt ($594/mt) CFR, JPY 2,500/mt ($22/mt) higher than its previous bid announced on February 14. POSCO has increased its bids for HS grades by a slightly higher margin as compared to Hyundai. The freight between South Korea and Japan is around JPY 3,500-4,000/mt ($30-35/mt). As SteelOrbis reported yesterday, Hyundai’s bids for HS scrap were at JPY 64,000/mt ($555/mt) FOB, while its bids for shredded scrap and shindachi bara grades were both at JPY 64,000/mt ($555/mt) FOB.
POSCO’s bids for shredded and shindachi bara grades have increased by JPY 3,000/mt ($26/mt) and JPY 4,500/mt ($39/mt) to JPY 67,000/mt ($582/mt) and JPY 68,500/mt ($595/mt) respectively, both on CFR basis.
Meanwhile, Dongkuk Steel has increased its domestic scrap procurement prices at its Pohang plant by KRW 10,000/mt ($8/mt) effective on February 19, with its local scrap prices for A weight scrap now in the range of KRW 655,000-680,000/mt ($549-569/mt). Korea Steel and YK Steel will also raise their local A weight scrap prices by KRW 10,000/mt ($8/mt) on February 19. Hyundai Steel’s price for this grade is still at KRW 655,000/mt ($549/mt).
$1 = JPY 115.15
$1 = KRW 1,194
