South Korean producer POSCO has announced bids for Japanese scrap at higher prices in order to secure tonnages. Market sources believe that this move is the result of low local scrap availability. Scrap availability in the local South Korean market has been on the low side for months. Due to the lack of steel sales and maintenance works by major mills, domestic scrap purchase prices in South Korea had hit bottom levels. Currently, South Korean steel producers are increasing their local scrap purchase prices, while they are also bidding for scrap imports.
POSCO has shared bids for Japanese HS grade scrap at JPY 48,000/mt ($326/mt) CFR. The producers’ bids for shindachi grade scrap are now JPY 47,000/mt CFR or $319/mt CFR.
As SteelOrbis reported earlier today, August 29, the Tokyo Bay HS grade scrap price has moved up by JPY 500/mt week on week to JPY 45,000/mt ($306/mt) FAS or JPY 46,000/mt ($313/mt) FOB. Accordingly, POSCO’s bids for HS scrap appear to be lower than Japanese sellers’ targeted prices.
$1 = JPY 147.08
