South Korean producer Hyundai Steel returned to the import scrap market earlier than expected. While domestic scrap flow in South Korea is still heathy, some players think that the price may have hit the bottom. Earlier this week, domestic scrap prices in one region increased but players were not sure whether this would become a trend. So many were waiting to see how the situation would turn out, but with Hyundai Steel’s bids increasing sentiment in the region is now better.
SteelOrbis has learned that Hyundai Steel has shared a bid for Japanese H2 grade scrap at JPY 52,000/mt ($406/mt) FOB. The previous bid from Hyundai Steel for Japanese H2 scrap was announced on December 27 at JPY 49,000 ($366/mt - with the exchange rate at 133.65 to the dollar) FOB. Considering the fluctuation of the exchange rate, Hyundai Steel’s bid has indicated a $40/mt increase on dollar basis.
As a result, the SteelOrbis reference prices for ex-Japan H2 scrap have remained stable at JPY 52,000-53,000/mt ($406-413/mt) FOB. The lower end represents Hyundai Steel’s new bids announced today, while the upper end is now represented by Vietnam’s procurement prices with freight being around $30/mt. The appreciation of the Japanese yen has resulted in a $6/mt increase in dollar-based quotations on the lower end, with the upper end down by $3/mt.
Hyundai Steel has also released bids for HS scrap at JPY 56,000/mt ($437/mt) FOB, higher than POSCO Steel’s bid from last week at JPY 52,500/mt FOB, with freight being at around JPY 3,500/mt.
Meanwhile, Hyundai Steel’s bids for shredded scrap stand at JPY 54,500/mt ($425/mt) FOB.
Currently, indications for workable levels for ex-US HMS I scrap offers to South Korea are at $430-435/mt CFR, relatively stable week on week.
$1= JPY 128.31