While Vietnam’s import scrap market has remained silent in terms of import scrap purchases this week, South Korean steelmaker Daehan Steel has shared bids for Japanese scrap. As SteelOrbis reported before the possibility of strikes at South Korea’s biggest producers POSCO and Hyundai Steel arose, South Korea’s demand for scrap remained below the usual tonnages for a long time. POSCO was sporadically bidding for Japanese scrap, mostly for higher grades such as shredded and HS grades. According to local news agencies, “POSCO, the number one steel company in South Korea, has entered its first strike since its founding as negotiations on wages and collective agreements between labour and management broke down, and Hyundai Steel’s wage negotiations with the union are also expected to be prolonged. If a strike becomes a reality at major business sites of both companies, it is expected to have a significant impact on performance in the second half of the year.”
SteelOrbis has learned that Daehan Steel has shared bids for Japanese HS scrap at JPY 53,800/mt ($360/mt) CFR. This level indicates FOB based prices for Japanese HS scrap are at around JPY 50,800/mt ($340/mt). A month ago, POSCO’s bids for Japanese HS grade scrap were at JPY 57,500/mt ($389/mt) CFR or JPY 54,500/mt ($369/mt) FOB, with the exchange rate standing at $1 = JPY 147.9.
Today, October 13, Tokyo Bay FAS-based prices for H2 grade scrap are at JPY 51,500/mt ($345/mt), stable on yen basis week on week. This level shows that FOB prices are still at JPY 52,500/mt ($351/mt) for this grade. Dollar-based prices have declined by $1/mt due to the depreciation of the yen against the US dollar.
Tokyo Bay FAS prices for HS grade scrap have moved sideways over the past week at JPY 55,000/mt ($368/mt). Prices for shindachi scrap are still at JPY 54,500/mt ($364/mt) FAS.
SteelOrbis’ reference price for ex-Japan H2 scrap remains unchanged this week at JPY 50,000-52,500/mt ($334-351/mt) FOB. Due to the depreciation of the yen, dollar-based quotations have declined by $1/mt week on week. The lower end is represented by Taiwanese producers’ ex-Japan H2 scrap booking, while the upper end is represented by the Tokyo Bay FOB prices.
$1 = JPY 149.60