Hyundai Steel Observes 3rd Price cut for Japanese Scrap Purchase in Sep'19

South Korean leading EAF steelmaker - Hyundai Steel has further lowered its purchase bids for Japanese scrap by another JPY 1,000/MT (USD 9) today. Even as this is the 3rd Price lowering by the company in Sep'19 as yet, however, looking at the current Japanese domestic scrap market, further price cuts can be expected in the coming days.

In bids presented today for Japanese scrap, the company has its reduced H2 scrap bids to JPY 24,000/MT (USD 223 ), FoB Japan as against JPY 25,000/MT (USD 232 ), FoB presented last weeks. The bid for other grades of scrap such as H1, stands at JPY 25,000/MT, FoB, while Shredded and HS scrap now stand at JPY 27,000/MT (USD 251 ) FoB.

Higher quality Shin Daichibara scrap's purchase bid for stands at JPY 27,500/MT (USD 255), FoB Japan, as its gap with lower-grade scrap has reduced due to its low demand.

In the last 6 months, the company has observed 13 successive price cuts while the bids have been lowered by JPY 10,000/MT in total, since March 2019 when H2 bid stood at JPY 34,000/MT FoB. The current prices are the company's lowest bids since June 2017, as per records maintained by SteelMint.

Japanese steelmaker, Tokyo Steel has observed 6 Price cuts in its scrap purchase bids in Sep'19 so far, while domestic scrap prices continue to be in a downward trend.

~ Inputs from SteelDaily