Hyundai Steel Raises Bid for Japanese Scrap by USD 14/MT

South Korean leading EAF Hyundai Steel has raised Japanese imported scrap bids by JPY 1500/MT in line with the sharp hike in scrap purchase bids for Japanese monthly scrap export tender Kanto Tetsugen for Jan'18.

As per latest update, South Korea's leading electric arc furnace steelmaker - Hyundai Steel has raised its import prices for Japanese H2 ferrous scrap by Japanese Yen 1500/MT (USD 14). Its latest bid put for H2 grade scrap was at JPY 37,500/MT (USD 339), FoB Japan against its last bid reported on 22nd Dec which was at JPY 36,000/MT (USD 326) FoB Japan.

Notably, after three consecutive hikes in scrap purchase prices by Hyundai Steel in Dec'17, company has witnessed raised scrap purchase bids further with the hike of USD 18/MT (JPY 2,000) for Japanese H2 scrap in a last one month's time. Japanese scrap demand expected to remain robust amid tight supply in domestic as well as exported scrap market as construction activities are at its peak in Japan.

Recently many of the South Korean leading steelmakers like Posco, Daehan, Dongkuk, SeAH and Hyundai have raised domestic scrap prices by KRW 10,000/MT (USD 9.3). Following Hyundai Steel's lead other South Korean steel mills are expected to raise Japanese scrap purchase bids further.

Kanto Tetsugen bid prices recorded at almost seven years high - Japan's monthly ferrous scrap export tender - Kanto Tetsugen has recorded highest bids in almost last seven years for Jan'18 since Feb'11. Bids placed for H2 scrap through this tender have increased by USD 15/MT M-o-M to JPY 37,800/MT FAS (USD 341) in Jan'18 against JPY 36,126/MT FAS (USD 326) awarded in Dec'17.

Tokyo Steel raised scrap buying prices by JPY 500/MT - Japan's leading EAF steel producer - Tokyo Steel raised scrap purchase price by Yen 500/MT (USD 4.5) on 13 Jan'18. Now H2 scrap fetches JPY 37,500/MT (USD 339) at largest work in central Japan-Tahara. While the same grade fetches JPY 36,500/MT (USD 330) at Utsunomiya works in north Japan, H2 bids are placed at JPY 36,000/MT(USD 325) for Okayama and Kyushu works in west Japan while for its Takamatsu Steel Center company keeps bids at JPY 35,500/MT (USD 321).

South Korea ferrous scrap imports in CY17 recorded highest since last 3 years - Ferrous scrap imports recorded in Dec'17 hit highest since Sept'14, while yearly ferrous scrap imports in CY17 were highest since last three years. Over the span of CY17, South Korea imported 5.90 MnT ferrous scrap which is highest among ferrous imports since last three years. In CY14, South Korea imported 7.73 MnT followed by 5.46 MnT and 5.64 MnT ferrous scrap imports in CY15 and CY16 respectively. Thus, South Korea witnessed a growth of 5% Y-o-Y in scrap imports in CY17 as against imports in CY16.