South Korean Mills Book Japanese Scrap; Market Sentiments Remain Bearish

South Korean steelmakers lowered their scrap purchase bids again for Japanese scrap this week. In bid presented by Hyundai Steel for Japanese H2 scrap procurement, the price moved down by around JPY 1000/MT to JPY 25,500/MT (USD 234) FoB Japan, as compared to JPY 26,500/MT bids reported in Dec'19.

Meanwhile, another major South Korean steelmaker YK Steel bid for Japanese H2 scrap at JPY 28,000/MT (USD 257) CFR basis. Other leading steelmakers postponed their bids for Japanese scrap on account of ongoing Lunar New Year holiday.

Notably, Japanese scrap prices fell by JPY 500/MT (USD 5) W-o-W, while the previous bids were moving down by JPY 1500 (USD 14) made by South Korean steelmaker earlier in Jan'2020.

Previously steel mills lowered its bids despite a hike in Kanto Tender bids. Japan's leading EAF- Tokyo Steel has also lowered its scrap purchase price last week. Further, the South Asian scrap market too reported low-level scrap prices with limited trades.

Thus, many furnace steelmakers expecting that Japanese scrap prices may further fall further in the coming days.

Japan's Tokyo Steel lowered scrap purchase price last week- Japan's Tokyo steel lowered its scrap purchase price by JPY 500 /MT (USD 5), effective from 25th Jan'20. The company is now paying JPY 24,500 /MT (USD 224) for H2 scrap delivered at Tahara plant in the central region, Kyushu works in the western region and Utsunomiya works located in the Kanto region.

~ Inputs from Steel Daily