South Korea's Hyundai Steel Keeps Bid Price Unchanged for Japanese H2 Scrap

Hyundai steel keeps bid offers for Japanese scrap unchanged but traders expect prices to inch up on strong domestic demand.

South Korea's leading electric arc furnace mill, Hyundai Steel, keeps its bid price for Japanese H2 materials unchanged as compared to last bookings which were made at around Yen 30,500-31,000/MT FOB, equivalent to USD 268/MT.

SteelMint learned from market sources that it is not confirmed if Hyundai Steel has managed to get any cargo at this price, as suppliers expectations are higher than the bid price.

"I am not sure if Hyundai Steel got any cargo at this level as suppliers expectations are not less than yen 32,000-32,500/MT FOB for H2 grade (equivalent to USD 281-285/MT). Japanese domestic scrap demand remains strong and prices may remain high in short to medium term" said a scrap trader based in Japan.

Japan's domestic scrap demand remains strong as this is a peak construction season in Japan. But prices will depend on how scrap exports from China shape up in coming months, said an electric arc furnace in Tokyo, Japan.

Japanese traders justify the strong demand for scrap in the domestic market by incremental billet exports from Japan. Japanese EAF mills are significantly ramping up their billet production in order to fulfill their export contracts. Following this, the companies have increased their scrap purchases.

Trade wise -

1. Tokyo Steel raised scrap prices by Yen 1000/MT (USD 9) at Tahara works with effect from today

2. Chinese scrap exports rise 23% in Sept'17 but expected to go down in Oct'17 on rising domestic demand

3. Chinese Busheling scrap offers to SE Asia Increase by USD 10/MT to USD 340/MT CFR Indonesia, in containers

4. Japanese H2 grade offers to Vietnam at around USD 300-305/MT CFR

5. Japan exported 5.33 MnT scrap during Jan-Aug, which is down 11% as compared to last year during the same period

6. Imported scrap offers to Turkey increase on recent deals. HMS from US at USD 304/MT and Shredded at USD 309/MT CFR Turkey

7. In the latest deal confirmed, Theostal sold 30,000 MT ferrous scrap to IDC a leading steel producer in turkey containing 22,500 MT HMS 1&2 (75:25), 2,500 MT Shredded and 5,000 MT Bonus scrap at an average price of USD 303/MT, CFR Turkey

8. In another deal reported, Koc Metalurji mill in Turkey booked ferrous scrap from Stemcore Tampa Industries from USA with HMS 1&2 (80:20) at USD 304/MT, CFR, Shredded at USD 309/MT and Bonus around USD 314/MT, CFR Turkey respectively

9. Traders expect scrap prices to remain stable or may move up in coming months amid restocking before winter season