South Korea: Hyundai Steel Keeps Bid Unchanged for Japanese Scrap

South Korea's largest scrap importer Hyundai Steel has kept bids for Japanese scrap unchanged this week. In contrast, Japanese suppliers remain resisting over an optimism about the market in upcoming weeks

South Korea's leading EAF steelmaker - Hyundai Steel has presented bids for Japanese scrap yesterday. As per updates received on this, Hyundai Steel has kept bids for all grades of Japanese scrap unchanged following weak Japanese domestic prices. H2 bid assessed stable at Japanese Yen 33,000/MT (USD 298) on FoB Japan basis against the bid placed last week (22th June).

The steelmaker did not place bid for H 1&2 (50:50) scrap last week owing to considerable inventories of low-grade scrap, however, it placed bid this week for H 1&2 (50:50) at JPY 33,500/MT (USD 303). Bids for medium grade scrap like HS and Shredded remained stable at JPY 37,000/MT (USD 334) and for high-grade scrap Shindachi Daichibara (SB) at JPY 40,000/MT (USD 361), FoB Japan.

Hyundai Steel heard to have secured 30,000 MT Japanese scrap last week at similar bids levels. While South Korean another leading steel mill Dongkuk steel has fetched around 12,000 MT of Japanese H2 at JPY 33,000/MT, FoB levels last week.

Hyundai Steel concludes a contract of bulk Russian scrap on weakening prices - Hyundai Steel has concluded a contract for Russian scrap recently. As per reports, the deal concluded for Russian A3 grade at an average price of USD 348/MT, CFR South Korea which is down by USD 7 from USD 355/MT, CFR levels in the earlier week. Russian scrap import prices have moved down sharply following global downtrend from USD 380-385/MT levels in last two months' time. While USA origin HMS 1&2 (80:20) was offered at USD 360-365/MT, CFR South Korea.

On the other hand, Japanese scrap suppliers believe that South Korean finish steel demand may rebind again in both domestic and exports markets in upcoming weeks which will possibly increase the demand for Japanese scrap again. Many of them remain resistant to the bids placed by Hyundai on optimism about the export market.

Hyundai Steel is the largest buyer of Japanese scrap and imports monthly around 200,000-250,000 MT scrap. Hyundai Steel's import bidding is considered as the major indicator of the market direction in South East Asia.

Japan's domestic scrap prices continue downtrend for the second week - According to price indices reported by Japan Iron and Steel Association, domestic scrap prices continue downward for a successive second week in Japan. The average price index for H2 scrap stood at JPY 33,100/MT (USD 299) down by JPY 200/MT on W-o-W basis. For Kanto region, H2 assessed at JPY 34,200/MT (down JPY 300/MT W-o-W) and for central region price index assessed at JPY 31,700/MT (down 300/MT W-o-W) respectively. Japan's leading EAF mini-mill - Tokyo Steel fetches H2 scrap at JPY 35,500/MT (USD 321) for Utsunomiya and JPY 35,000/MT at Tahara works.

Now average H2 scrap export offers from suppliers assessed in the range of JPY 34,000-35,000/MT, FoB for Kanto and Kansai regions in Japan. While traders are paying around JPY 33,000/MT on FAS basis to collect scrap to export from eastern Japan.

~Inputs from Steel Daily