South Korean mills lower bids for Japanese scrap

Bids for Japanese scrap have observed a significant correction this week. Hyundai Steel- South Korea's major steelmaker, has lowered bids for Japanese scrap by JPY 1,000-1,500/t ($10-14) yesterday as compared to its last bid presented on 24th Sep, traders have reported to SteelMint.

The current bids for H2 scrap stand at JPY 26,000/t ($247) FoB (down by JPY 1000/t), while the bid price for HS grade scrap is set at JPY 29500/t FoB (down by JPY 1500/t). However, deals were not reported at a presented bid price. Also, it is not clear that Japanese suppliers have accepted the lower level bid price or not.

Earlier this week, Dongkuk Steel has bid for H2 scrap was at JPY 26,500/t FoB and also the company has booked two cargoes at the bid price, as per SteelDaily.

After the Japanese monthly Kanto tender result concluded at lower levels at an average of JPY 28,406/t FAS on 9th Oct'20, Japanese suppliers resisting to reduce their offer price, however, Korean buyers continuously bidding at low level. Meanwhile, Hyundai Steel's demand is not that much for Japanese scrap, due to its Incheon plant is being under maintenance, witnessing a balance between demand and supply.

SteelMint's assessment for Japanese scrap export stands at JPY 27,000/t FoB Japan, down by JPY 500/t w-o-w.

Tokyo Steel's domestic scrap prices unchanged since mid Sept'20 -Japan's major steel manufacturing giant Tokyo steel, has kept its purchase price remains unchanged since mid-Sept'20. The company is currently paying at JPY 27,000/t ($256) for H2 scrap delivered at its Tahara plant in Central Japan and JPY 26,000/t ($ 247) in Utsunomiya plant (Kanto region). Sources claim that Tokyo Steel's scrap purchase price in Kanto region was already quite lower than export offers, hence the company has kept the prices unchanged.