Posted on 07 Apr 2023
South Korea’s Hyundai Steel lowered its latest bid prices for Japanese scrap in its tender on Thursday, Kallanish notes. It is aiming to book Japanese H2 grade scrap at JPY 49,800/tonne ($379/t), and H1/H2 grade at JPY 50,300/t, each JPY 2,500/t down from two weeks ago on 24 March. The Korean steelmaker’s bid for HS grade was JPY 53,300/t, down by JPY 3,000/t. These are on an fob Tokyo basis.
Hyundai’s prices are much lower than the prevailing scrap price in Japan. A Seoul-based trader expects the mill will secure a “rather small quantity” as the mill’s bids are subject to buyers' confirmation. "Hyundai will buy just a small tonnage this time. They think that the market is falling and so they have the chance to cut the buying price in the next scrap tender," another Seoul trader says. "The Korean mills' scrap inventories are healthy now," he notes. "They will also keep cutting the buying price in the domestic scrap market too," he adds.
Leading electric arc furnace operator Tokyo Steel is currently paying JPY 52,000/t for H2 grade scrap trucked to its Utsunomiya steelworks. It lowered prices by JPY 1,000/t effective 5 April.
Source:Kallanish
