South Korean steelmaker, Hyundai steel has lowered its bids for Japanese scrap for a second successive week. Despite Japanese ferrous scrap sellers expecting a rise in export price based on the Kanto tender results, the South Korean mill has resisted the present offer levels.  

Hyundai steel’s bids for Japanese higher-grade scrap including HS scrap equivalent to P&S, shindachi and shredded were at JPY24,500/mt ($229/mt) fob Japan as announced on Monday. These were JPY500/mt lower from the last week’s bids at JPY25,000/mt fob Japan.

 

The steelmaker has resumed bookings for other grades also this week and placed bids for #2 HMS at JPY22,000/mt fob Japan and H1: H2 at JPY22,500/mt fob Japan. Last week, the mill had stayed away from bidding for HMS scrap on high inventories in hand.

 

Japan’s July monthly scrap export tender ‘Kanto Tetsugen’ concluded on July 9 with the average winning bids at JPY23,574/mt ($220/mt) fas Tokyo bay or around JPY24,500/mt fob Japan for 22,000mt of ferrous scrap. Though these bids were down by JPY2,786/mt ($26/mt) from the prior month, they were JPY1500-2,000/mt higher than the current market levels. Japanese scrap prices are thus expected to increase in the coming days.

 

Considering the Kanto result, market participants believe Japanese scrap suppliers are unlikely to match these bids.  However, other South Korean mills as well as those in Taiwan are still bidding lower.

 

The weekly index for Japanese #2 HMS scrap exports was at JPY26,500/mt fob Japan on June 17, and in the subsequent three weeks declined by JPY4,500/mt to settle at JPY22,000/mt fob Japan on July 8. 

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