Having opposed the international scrap market trend for two weeks, South Korean steel producer Hyundai Steel has increased its bids for Japanese scrap. This week, a South Korean source reported that the mood in the country has been changing with Japanese suppliers gaining confidence. With the Kanto tender yesterday successfully concluded with higher price levels, Hyundai Steel was expected to again show interest in Japanese scrap.
SteelOrbis has learned that Hyundai Steel has shared a bid for Japanese H2 grade scrap at JPY 54,000/mt ($396/mt) FOB. The previous bid from Hyundai Steel for Japanese H2 scrap was announced on February 22 at JPY 51,000 ($378/mt - with the exchange rate at 134.77 to a dollar) FOB. Considering the fluctuation of the exchange rate, Hyundai Steel’s bid has indicated a $18/mt increase on dollar basis.
The Kanto tender FAS prices yesterday translated to JPY 56,438/mt or $414/mt FOB on average. Following the Kanto tender, Tokyo Steel’s general range for H2 grade scrap has moved up to JPY 54,500-55,500/mt ($400-407/mt), depending on the mill. Hyundai Steel has kept its prices below both benchmarks for now. Yesterday, the Japanese yen was at 136.44 to the dollar.
As a result, the SteelOrbis reference prices for ex-Japan H2 scrap have changed from JPY 52,000-56,500/mt ($382-414/mt) FOB to JPY 54,000-56,500/mt ($396-414/mt) FOB. The lower end is now fully represented by Hyundai Steel’s most recent bid today, with the upper end of the range represented by the Kanto tender.
Hyundai Steel has also released bids for HS scrap at JPY 57,000/mt ($418/mt) FOB, JPY 3,000/mt or $17/mt higher than the levels on February 22.
Meanwhile, Hyundai Steel’s bids for HMS I/II 50:50 scrap stand at JPY 54,500/mt ($400/mt) FOB, JPY 3,500/mt or $22/mt higher than the previous bid.
As SteelOrbis mentioned yesterday, March 9, indications for ex-US bulk HMS I/II 80:20 scrap to South Korea stand at $470/mt CFR. Freight between South Korea and the US is currently $30-35/mt.
$1 = JPY 136.41