As the pressure on Japanese scrap continues, South Korean producer Hyundai Steel cuts its bids again today, November 17. This is the second cut that the Korean mill has announced since October 21.
Hyundai Steel reduced its bids for H2 grade by JPY 2,000/mt ($17.4/mt) as compared to the levels announced on November 5, to JPY 49,500/mt ($431/mt) FOB. This price is JPY 1,000/mt ($9/mt) lower from the latest deal price level seen in S. Korea late last week.
Hyundai’s bids for HS and shredded scrap have also moved down by JPY 2,000/mt ($17.4/mt) to JPY 57,000/mt ($496/mt) FOB and JPY 56,000/mt FOB ($488/mt), respectively. The producer decreased its bids for shindachi bara by JPY 2,000/mt ($17.4/mt) to JPY 63,500/mt FOB ($553/mt) FOB.
A Japanese seller states that “Hyundai is checking how much tonnage Japanese suppliers wants to sell at the bid price. Hyundai thinks market is going down, they will buy only one or two cargoes for each grade or they can buy only few grades.” Local scrap prices in Japan are still visibly higher (by $13-52/mt) than the latest bids from S. Korea, so sellers will try to limit sales volumes to Hyundai Steel. But it seems that the driving power is on the customers’ side at the moment.
Meanwhile, it is also observed that Hyundai Steel has cut its domestic scrap prices and there is another planned reduction coming on November 23. Hence, the domestic A weight scrap prices of the producer is now listed at KRW 600,000-615,000/mt ($508-520/mt) in its Incheon, Dangjin and Puhang plants. With the KRW 10,000-15,000/mt ($8-13/mt) decrease announced yesterday, Dongkuk Steel’s domestic A weight scrap purchase prices are now in the range of KRW 615,000-630,000/mt ($520-533/mt) in Incheon and Puhang.
Also SeAH Besteel announced a couple of declines in its domestic saengchol grade prices this week, a total of KRW 10,000/mt ($8/mt), while the procurement price is now at KRW 679,000/mt ($575/mt).
$1 = JPY 114.8
$1 = KRW 1,181.5