Having reduced their domestic scrap prices over the past two weeks, South Korean mills are also exerting pressure on import scrap quotations. Today, April 20, Hyundai Steel has announced new bids for ex-Japan scrap with another JPY 1,000/mt cut. With Vietnam staying out of the market as producers are adjusting to the new situation of duty-free billet imports, South Korean producers are not experiencing competition for Japanese scrap. The sentiment in the Asian market remains gloomy as no recovery is expected yet in the international scrap segment.
SteelOrbis has learned that Hyundai Steel has shared a bid for Japanese H2 grade scrap at JPY 48,800/mt ($363/mt) FOB. The previous bid from Hyundai Steel for Japanese H2 scrap was announced on April 6 at JPY 49,800/mt ($379/mt - with the exchange rate at 131.48 to the dollar) FOB. Considering the fluctuation of the exchange rate, Hyundai Steel’s bid has indicated a $16/mt fall on dollar basis.
Today, April 20, Tokyo Steel’s general range for H2 grade scrap has moved down to JPY 49,000-51,500/mt ($364-382/mt), depending on the mill. The dollar-based prices have decreased by $8-9/mt as compared to the previous levels announced on April 11.
As a result, the SteelOrbis reference prices for ex-Japan H2 scrap have moved down from JPY 49,800-52,000/mt ($378-396/mt) FOB to JPY 48,500-52,000/mt ($360-386/mt) FOB. The lower end is now fully represented by Hyundai Steel’s most recent bid today, while the upper end of the range is represented by the offers from Japan to Vietnam.
Hyundai Steel has also reduced bids for HS scrap by JPY 1,000/mt or $16/mt to JPY 52,300/mt ($389/mt) FOB as compared to the levels on March 24.
$1 = JPY 134.56