South Korean steelmarker POSCO has kept its bid prices for Japanese scrap unchanged week on week. Market sources report that suppliers are asking for levels higher by around JPY 1,000/mt. While Japanese suppliers are seeking to raise their offer prices to South Korea, domestic scrap prices in the latter country are still moving down. “Weak product demand in South Korea is the reason for this downward push in the local scrap market,” a source at a major South Korean producer commented, adding that a further decline in prices is expected in November.
POSCO has shared bids for Japanese HS grade scrap at JPY 51,000/mt ($334/mt) CFR, stable as compared to last week. POSCO’s dollar-based bids are also stable compared to last week. The producers’ offers for busheling grade scrap are at JPY 50,000/mt CFR or $328/mt CFR, $1/mt higher week on week.
POSCO’s bids for Japanese shredded scrap have moved sideways at JPY 49,000/mt ($321/mt) CFR, unchanged as compared to last week. The JPY 49,000/mt level indicates FOB-based prices for Japanese shredded scrap are at around JPY 46,000/mt or $302/mt, with freight between South Korea and Japan being at around JPY 3,000/mt, $1/mt higher week on week.
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 $275-282/mt FOB. This dollar-based H2 scrap price range on FOB basis is stable on the lower end and $1/mt higher on the upper end as compared to last week.
$1 = JPY 152.44