While last week certain buyers accepted some rises in ex-Japan scrap prices, in particular, buyers based in Vietnam and Taiwan, South Korean steelmakers, on the contrary, have continued to exert pressure on Japanese scrap suppliers.
In particular, today, September 13, South Korean steelmaker Hyundai Steel has announced a decrease in its bid scrap prices for ex-Japan scrap by JPY 500-1,000/mt ($4.5-9/mt), depending on the grade. According to the company’s announcement, bids for H2 grade, shredded and HS scrap have decreased by JPY 500/mt ($4.5/mt) to JPY 43,500/mt ($395/mt) FOB, JPY 53,500/mt ($486/mt) FOB and JPY 56,500/mt ($513/mt) FOB, respectively. The latest bid of Hyundai Steel for H2 scrap is JPY 1,500-2,000/mt ($14-18/mt) below the prices in contracts done by other steel mills in South Korea last week.
The new bid for shindachi has been set by Hyundai at JPY 61,500/mt ($559/mt) FOB, down JPY 1,000/mt ($9/mt) compared to the previous levels of bids from the producer.
However, it remains to be seen whether Hyundai Steel will be successful in obtaining significant volumes at such prices, considering the more favorable situation in other locations. “We are not sure how much tonnage Hyundai is able to buy as of now. Taking into account the unattractive bids declared by the company, the volumes might be small,” a trader stated. The lower bids from Hyundai Steel are due to the repairs done by the company and lower consumption in general.