As major South Korean steelmaker Hyundai Steel returns to the market with new bids for Japanese scrap, SteelOrbis hears that the mill’s intention is to buy small tonnages “to disperse risks.” The strike of Hyundai Steel workers continues, and the supply disruption is still felt in the South Korean steel market. According to a local news agency, “The labour union demands a KRW 165,200 ($118) rise in workers' base monthly salary and 15 percent of the operating profit shared as incentives for employees. They argued that other Hyundai affiliates, such as Hyundai Mobis, have paid an extra KWR 4 million per worker as a special incentive.”
Hyundai Steel announced bids for Japanese scrap this week, cutting its price for H2 grade to JPY 48,000/mt ($332/mt) FOB. The most recent adjustment in price had been made on September 22 when Hyundai Steel decreased its bids for Japanese H2 grade to JPY 48,500/mt ($340/mt) FOB.
As a result, the reference price for ex-Japan H2 scrap has moved down by JPY 500/mt on the upper end over the past week to JPY 47,000-48,000/mt ($325-332/mt) FOB. Due to the fluctuation of the Japanese yen against the US dollar, the dollar-based prices have declined by $3/mt on the upper end week on week. The lower end of the range is now represented by Vietnam’s purchase prices, while the upper end has been revised in line with Hyundai Steel’s most recent bids from Japan.
$1 = JPY 144.51