The import scrap market in South Korea has remained active over the past week with two major mills returning to ex-Russia scrap purchases after some pause. Hyundai Steel has reduced its bids for Japanese scrap today, July 29, but most market sources agree that even if some discounts for lower grade are possible, prices for higher grades like shindachi are unlikely to be under big pressure due to limited supply.
SteelOrbis has learned that Hyundai Steel bought 60,000 mt of Russian A3 grade scrap this week at $490/mt CFR, while another important Korean steel producer has booked 10,000 mt of Russian A3 grade scrap at the same price level. These purchases have been connected with the needs to replenish stocks, while offers for ex-US HMS I scrap are hardly below $515/mt CFR. Bids for ex-US HMS I are at $495-500/mt CFR from S. Korea. Vietnamese buyers are also bidding at not above $500/mt CFR for ex-US HMS I/II 80:20 scrap.
According to Hyundai’s announcement, bids for H2 grade and shredded scrap have decreased by JPY 1,000/mt ($9/mt) to JPY 47,000/mt ($427/mt) FOB and JPY 57,000/mt ($518/mt) FOB, respectively, compared to the previous level. This new H2 bid from Hyundai Steel is JPY 500/mt ($4.5/mt) below the last deals heard to S. Korea earlier this month.
Additionally, the producers purchase prices for H1 grades are now at JPY 48,000/mt ($436/mt) FOB, HS grades wanted to be booked at JPY 60,000/mt ($546/mt) FOB. Shindachi bara bid prices have decreased by JPY 500/mt to JPY 64,000/mt ($582/mt), while shindachi press scrap prices are stable at JPY 65,000/mt ($591/mt), both on FOB basis.
This is the first reduction in Hyundai’s prices announced over the past two months. Hyundai Steel cited its decision to lower its scrap purchase prices by lower domestic scrap quotations as well as the maintenance works.