Hyundai raises bid price for Japanese scrap

Posted on 15 January 2022

South Korea’s leading electric arc furnace operator, Hyundai Steel, has raised its bid prices for certain Japanese scrap grades in its recent purchase auction.

The steelmaker placed bids on 13 January for H2 grade scrap at JPY 49,000/tonne ($428/t) fob Japan. It also posted bids at JPY 56,000/t fob for shredded scrap, JPY 58,000/t for HS grade scrap and JPY 57,000/t for Shindachi Bara (loose) scrap in the same auction, Kallanish notes. The mill hiked its bid for H2 scrap by JPY 2,000/t and JPY 4,000/t for HS grade scrap in yesterday's auction.

“Hyundai is aiming to buy HS grade scrap because its bid price for H2 is too low to secure material,” a regional trader says. The prevailing market price for H2 scrap is at around JPY 52,000/t fob and the price gap of JPY 3,000 is too big, he adds.

The recent Kanto Tetsugen tender closed on 12 January at an average award price of JPY 50,983/t fas, or around $455/t fob. There are current offers for February shipment at $496/t cfr and $498/t cfr Phu My, importing sources in Vietnam said on Thursday.

A leading mill in Vietnam recently purchased Japanese H2 scrap at $500/t cfr Haiphong and H1/H2 50:50 at $505/t cfr. The mill needed the January-shipment cargoes urgently because of the near expiry of its scrap import licences, a Vietnamese trader says.

Source : Kallanish