Domestic scrap flow in South Korea is considered to be healthy, despite the reduced procurement prices of mills. Market players think that this is limiting the impact of the international scrap market’s upward trend in South Korea. “We are in a slightly different situation here, but this decrease in prices is not expected to be a trend. Finally, we will be forced to follow the international market,” a source reported. And the return of South Korean producer Hyundai Steel to the Japanese scrap market only supports this idea. The producer was staying away from imports for a while, as it was reducing its domestic scrap procurement prices in the meantime. Its announcement of a new bid for Japanese scrap, even though lower than its previous bid, is interpreted as a move to secure tonnages.
SteelOrbis has learned that Hyundai Steel has shared a bid for Japanese H2 grade scrap at JPY 51,000/mt ($378/mt) FOB. The previous bid from Hyundai Steel for Japanese H2 scrap was announced on February 2 at JPY 52,000 ($406/mt - with the exchange rate at 128.31 to the dollar) FOB. Considering the fluctuation of the exchange rate, Hyundai Steel’s bid has indicated a $28/mt decrease on dollar basis.
Hyundai Steel has also released bids for HS scrap at JPY 54,000/mt ($401/mt) FOB, JPY 2,000/mt or $36/mt lower than the levels on February 2.
Meanwhile, Hyundai Steel’s bids for HMS I/II 50:50 scrap stand at JPY 51,000/mt ($378/mt) FOB.
$1 = JPY 134.77
