South Korean steelmaker POSCO has continued to share bids for Japanese scrap for the fourth consecutive week, increasing its purchase prices week on week. POSCO’s plans to cut its carbon footprint in the future and the company is investing in a project to build scrap collection bases to secure its raw material needs in the long term.
POSCO has shared bids for Japanese shredded scrap at JPY 59,000/mt ($366/mt) CFR, JPY 1,000/mt or $4/mt higher than the Japanese yen-based bids shared by the producer for this grade on June 28. This level indicates FOB based prices for Japanese shredded scrap are at around JPY 56,000/mt ($347/mt, up by $4/mt amid exchange rate fluctuations.
Considering the gap between ex-Japan shredded and H2 scrap prices at around JPY 3,000-4,000/mt, this means indications for ex-Japan H2 prices for South Korea are at JPY 52,000-53,000/mt FOB, increasing by $4/mt to $322-328/mt FOB week on week.
Earlier this week, Tokyo Bay FAS-based prices for H2 grade scrap were at JPY 50,000-51,500/mt ($310-320/mt). This level shows that FOB prices are at JPY 51,000-52,500/mt ($316-326/mt) for this grade.
Meanwhile, ex-Japan HS scrap prices are standing at JPY 55,000-56,500/mt ($341-351/mt) FAS and shindachi scrap quotations are at JPY 54,000-55,000/mt ($335-341/mt) FAS.
$1 = JPY 161.15
