South Korean steelmaker Hyundai Steel raised bids for Japanese scrap by JPY1,500/mt ($14/mt) on Friday. The company placed its new bids for Japanese H2 at JPY26,500/mt fob, up by JPY1,500/mt from JPY25,000/mt fob from a week ago. Hyundai Steel returned to open tender after it received weak response in individual negotiations in the prior week. The company has placed bids for around 100,000mt of ferrous scrap to replenish its inventories.
The company placed bids for other grades of scrap including H1/2(50:50) at JPY27,000/mt, busheling at JPY30,000/mt, HS and shredded at JPY29,500/mt on fob Japan basis.
These bids still are significantly lower compared to the US scrap prices that have risen by $30/mt for January bulk bookings.
Most Japanese scrap suppliers are offering H2 scrap at JPY27,000/mt fob. Market participants expect Hyundai to not receive active response from the suppliers as there is a gap of JPY500/mt bids and offers and price are expected to move up in the near term.