Over the past week, South Korean steelmaker Hyundai has further reduced its bids for Japanese scrap.
According to Hyundai’s announcement, bids for H2 grade and shredded scrap have decreased by JPY 1,500/mt ($14/mt) to JPY 45,500/mt ($415/mt) FOB and JPY 55,500/mt ($507/mt) FOB, respectively, compared to the previous levels recorded last week.
Additionally, the producer’s purchase prices for HS grades are now at JPY 58,500/mt ($534/mt) FOB, again JPY 1,500/mt ($14/mt) lower as compared to last week. Shindachi bara and shindachi press scrap prices are stable at JPY 64,000/mt ($584/mt) and JPY 65,000/mt ($593/mt), respectively, all FOB basis.
This is the second reduction in Hyundai’s prices announced after the stable price policy followed for the last two months. Last week, it was observed that Hyundai cut its bids for Japanese scrap by JPY 1,000/mt or $9/mt for the first time in two months.
Also, interest in additional volumes of ex-Russia A3 scrap is still seen in South Korea. As SteelOrbis reported last week, two major mills in the country booked 70,000 mt of ex-Russia scrap at $490/mt CFR, though some sources believe that the final prices were closer to $495/mt CFR. It has been mentioned in the market that an additional 20,000 mt of the same origin have been traded in addition to the previous volume, amounting to a total tonnage of 90,000 mt. The price is heard to be almost in line with the previous levels.
$1 = JPY 109.54