S. Korea’s POSCO bids for Japanese scrap, dollar-based price down $13/mt

Thursday, 08 February 2024 16:20:53 (GMT+3)   |   Istanbul
       

South Korean steel producer POSCO has shared bids for Japanese scrap, reducing them by JPY 1,500/mt as compared to the levels recorded in late January. With the Japanese yen’s depreciation, dollar-based prices have moved down further. Ahead of the Lunar New Year holiday four days, domestic scrap prices in South Korea are once again decreasing. Meanwhile, Hyundai Steel has not shared bids for Japanese scrap since last August, though SteelOrbis hears that the producer is procuring scrap from its yards in Japan. A South Korean player commented “We [South Korean mills] have been fairly quiet in overseas markets due to the price gap between domestic and overseas scrap.” Also, several South Korean mills have scheduled maintenance works and some are even currently carrying out maintenance works. This situation is not expected to push scrap prices down. Market players report that, although finished steel demand is on the low side, scrap inventories are also low. One source stated, “Depending on the scrap flow after the holiday, we may see some buying from overseas to stock up.”

POSCO has reduced its bids for Japanese shredded scrap by JPY 1,500/mt as compared to the levels recorded on January 22 to JPY 57,000/mt ($382/mt) CFR, with another $13/mt drop observed in dollar-based prices. This level indicates FOB-based prices for Japanese shredded scrap are at around JPY 54,000/mt ($362/mt), again indicating a $13/mt decline.

A South Korean source at a major mill said the current gap between ex-Japan shredded and H2 scrap prices should be around JPY 3,000-4,000/mt. This means indications for ex-Japan H2 prices for South Korea are at JPY 50,000-51,000/mt FOB or $335-342/mt FOB.

$1 = JPY 149.21


Similar articles

US scrap markets seen sideways for December following recent strong November settles

22 Nov | Scrap & Raw Materials

Turkey’s deep sea scrap prices continue their sharp fall

21 Nov | Scrap & Raw Materials

Carbon and stainless scrap prices in Taiwanese domestic market - week 47, 2024

21 Nov | Scrap & Raw Materials

Import scrap prices decline in Bangladesh, more decreases expected

21 Nov | Scrap & Raw Materials

Turkey’s import scrap market takes a dive

20 Nov | Scrap & Raw Materials

Import scrap prices down in Pakistan, trade hit by low demand and smog

20 Nov | Scrap & Raw Materials

Local Chinese scrap prices still post only small changes, but negative bias persists

20 Nov | Scrap & Raw Materials

Russia may extend quotas on scrap exports outside EAEU to end of 2025

20 Nov | Steel News

Import scrap prices in India soften amid higher local raw material and finished steel stocks

20 Nov | Scrap & Raw Materials

November US Northeast scrap prices settle mixed versus October amid steady export scrap demand and limited mill buying

20 Nov | Scrap & Raw Materials