Japanese scrap export prices up further in recent bids by South Korean mills

Japanese scrap export prices for higher grades have witnessed a sharp hike in recent bids presented by South Korean mills. However, buying interest for H2 grade scrap remained low. SteelMint's assessment for Japanese scrap export offers stands at JPY 28,000/t FoB ($ 270), up by JPY 500/t w-o-w.

Hyundai Steel- South Korea's major steelmaker, presented bids for Japanese scrap purchase yesterday. While the bid price has observed a hike of JPY 2,500/t ($24) as compared to the bid presented on 15th Oct'20, however, the company did not make any bid for Japanese H2 grade scrap for now.

Current exchange rate- $1= JPY 103.24

Notably, the company has not booked any Japanese scrap cargo from the last couple of weeks and for the time being, it had booked 20,000 t of Russian scrap at $281/t CFR Korea basis two weeks ago, considering cost-effectiveness.

Hyundai Steel extends maintenance in Incheon plant- Hyundai Steel has decided to extend the maintenance of its Incheon-based steel plant to ten more days until 4th Dec'20, which was originally scheduled to be completed till 25th Nov, in preparation to increase scrap consumption, as per SteelDaily report.

Japan's domestic scrap market overview- Japan's Tokyo Steel has announced a price hike for scrap purchase price by JPY 500/t ($5) for all its four plants, effective from today (6th Nov'20), while prices for Utsunomiya works in the Kanto region have been kept unchanged. Notably, prices for Tahara plant recorded highest since 21st Jun'19. The company would pay JPY 28,000/t ($268) for H2-scrap delivered to Tahara, Kyushu, and Okayama work.