South Korean steelmaker POSCO has issued bids for Japanese scrap again, for the fifth consecutive week. This time, POSCO has kept its bids for HS grade stable but has decided to cut its bids for shredded. Since Japanese scrap export offers are declining and POSCO is trying to secure high grade scrap from Japan, the reduction in shredded prices is considered normal for now.
POSCO has shared bids for Japanese HS grade scrap at JPY 51,000/mt ($336/mt) CFR, stable as compared to last week. POSCO’s bids are now $5/mt lower than last week’s price due to the exchange rate fluctuations.
This time, POSCO has shared bids for Japanese shredded scrap at JPY 49,000/mt ($322/mt) CFR, down JPY 1,000/mt or $12/mt from the previous level announced last week. The JPY 49,000/mt level indicates FOB-based prices for Japanese shredded scrap are at around JPY 46,000/mt or $303/mt with freight between South Korea and Japan being approximately JPY 3,000/mt.
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 42,000-43,000/mt FOB or $276-283/mt FOB. This dollar-based H2 scrap price range on FOB basis is $9-11/mt lower than the levels calculated late last week.
In the current week, Tokyo Bay FAS-based prices for H2 grade scrap were at JPY 42,500/mt ($280/mt). This level shows that FOB prices are at JPY 43,500/mt ($286/mt) for this grade. Both prices have remained stable week on week.
Meanwhile, ex-Japan HS scrap prices were standing at JPY 46,500/mt ($306/mt) FAS and shindachi scrap quotations are at JPY 46,000/mt ($303/mt) FAS.
$1 = JPY 151.99