South Korean Mills Lower Bids for Japanese Scrap; Market Expects Rebound After Kanto Results

South Korean steel mills lowered its bids for Japanese scrap this week even as export offers by Japanese suppliers remained firm, widening the gap between expectations of buyers and suppliers. In bids presented this week by South Korean steel mills for Japanese H2 scrap procurement, the price moved down by JPY 1500/MT to JPY 25,000 /MT (USD 228) FoB Japan as compared to JPY 26,500/MT bids reported in Dec'19. As per reports, the price moved down by JPY 1500 (USD 14) against previously presented bids.

However, with yesterday's Kanto tender result witnessing a rise in winning bids, the South Korean mills will be under pressure to increase their bids, with further price revisions likely in the coming weeks, as the market expects prices to move up. Japan's Kanto Tetsugen tender for Jan'20 concluded yesterday, in which a total of 26,100 MT of Japanese H2 scrap was awarded at an average price of JPY 26,667 /MT (USD 243), FAS, witnessing a significant rise by JPY 863/MT (USD 8) on a monthly basis.

Out of the total quantity auctioned, the first tender was for 5,100 MT which is concluded at JPY 26,700/MT (USD 243.9), the second tender at JPY 26,680/MT (USD 243.7) for 6,000 MT and the final tender resulted at JPY 26,650 /MT (USD 243.4) for 15,000 MT of ferrous scrap.

Hyundai Steel books Russian scrap cargo - Meanwhile, Hyundai Steel booked a Russian scrap bulk vessel for late February to March shipments. The Russian A3 grade scrap was booked in large quantity, however, the price could not be confirmed at the time of publishing.

~inputs from Steel Daily