South Korean mills have announced new bids for ex-Japan scrap, hiking them significantly, as they have understood that after the Kanto export tender suppliers will insist on higher prices and will still try to limit sales at low bids. The supply shortage in the Asian market has added to the situation.
Hyundai Steel have announced its new bid for H2 scrap from Japan at JPY 40,000/mt ($384/mt) FOB, up by JPY 6,500/mt ($62/mt) from the market price level a week ago and JPY 4,500/mt ($43/mt) above the price in the latest deal done in South Korea for this grade in the middle of this week before the Kanto auction. Also, the producer has been bidding at JPY 40,500/mt ($389/mt) FOB for H1/2 scrap. Prices for HS and shredded scrap have risen to JPY 43,500/mt ($418/mt) FOB, up by JPY 6,500/mt from Hyundai's bid last week. The mill’s new price idea for shindachi scrap has been settled at JPY 44,000/mt ($423/mt) FOB. The shindachi scrap price has added JPY 7,000/mt ($67/mt) over the past week.
According to sources, Dongkuk Steel has also released its bid for H2 scrap at JPY 40,000/mt FOB on Friday.
Such a high price, however, has not attracted suppliers immediately as they believe that the uptrend will continue and that demand will persist.
The SteelOrbis reference price for H2 scrap from Japan has surged further to JPY 40,000/mt ($384/mt) FOB, up by JPY 3,000/mt ($29/mt) on Friday, December 11, and rising by JPY 6,000/mt ($58/mt) since last week.