South Korean steel producer POSCO has kept its bids for Japanese scrap stable as compared to the levels announced on June 28. It is observed that domestic scrap prices in South Korea are dropping and basically all mills are participating in price drop. Meanwhile, SteelOrbis has learned that scrap inventory levels of the South Korean producers are rising, some mills are expected to ask for another drop in the local scrap market. According to a South Korean contact, “Product price and demand is not improving but maintaining the poor status with fears that it will be worse in the latter half of this year”. Same contact from a major South Korea producer reminds that some mills have already purchased bulk cargoes will receive them in July and early August, and these tonnages will also exert downward pressure on prices.
SteelOrbis has learned that the South Korean mill POSCO has shared a bid for Japanese HS grade scrap at JPY 56,000/mt ($393/mt) CFR or JPY 53,000 ($372/mt) FOB. The previous bid from Hyundai Steel for Japanese HS scrap was announced on June 23 at JPY 53,000/mt ($370/mt with the exchange rate at 143.23) FOB.
POSCO’s shindachi scrap bids were at JPY 56,000/mt ($393/mt) CFR or JPY 53,000/mt ($372/mt) FOB, while bids for shredded scrap were at JPY 55,500/mt ($389/mt) CFR or JPY 52,500/mt ($368/mt) FOB. Hyundai’s bids for Japanese shredded scrap on June 23 was at JPY 52,000/mt ($363/mt) FOB.
Meanwhile, indications for US West Coast bulk cargoes to South Korea are at around $400/mt CFR and below.
$1 = JPY 142.58