Japanese scrap export costs to S Korea enhance as Hyundai Steel elevates bidJapanese ferrous scrap export prices to South Korea remained to increase after leading South Korean EAF mill Hyundai Steel increased its bidding price in a current acquisition tender, resources in Japan as well as South Korea claimed Thursday.
click here published its quote for Japanese scrap at Yen 17,000/ mt FOB (9/mt) for H2 grade material, Yen 19,000/ mt FOB for HS grade along with shredded grade, and also Yen 19,500/ mt FOB for Shindachi grade.
Additionally, the South Korean steel mill offered an additional premium of Yen 500/mt for bookings exceeding 6,000 mt, resources in Tokyo and Seoul validated Thursday. These orders were for cargoes for shipment by April 20.
Platts evaluated its weekly H2 scrap cost on Wednesday at Yen 16,500-16,800/ mt FOB Tokyo Bay, up from the previous week's Yen 16,200/ mt FOB.
The implied mid-point of Yen 16,650/ mt was Yen 450 higher on week.
Hyundai's booking of Japanese scrap late last week went to Yen 16,500/ mt FOB for H2 material, with an added costs of Yen 300/mt for bookings surpassing 4,000 mt and also Yen 500/mt for those surpassing 6,000 mt.
Investors are unclear how much tonnage the South Oriental mill would certainly be able to purchase at Wednesday's quote costs.
A Tokyo-based scrap investor was amazed over Hyundai's newest bid degree. "We thought Hyundai would certainly keep its target rate unchanged. Provides from the Japanese traders were a lot higher this time, so we believe the business had to lift its offer costs to secure the quantity it calls for," he claimed.
Japanese investors are currently intending to sell Japanese H2 at the minimum of Yen 17,500/ mt FOB, up Yen 500/mt from last week.
Another scrap trader in Tokyo stated that as the supply of scrap for packing onto vessels for export has been tight, lots of traders are most likely to only provide cargoes not going beyond 6,000 mt, so most offers would certainly be taking place at Yen 17,000/ mt FOB, with no volume additional fees.
"The quote rates are still less than the Japanese traders' target prices so we ask yourself if Hyundai can safeguard the volume it anticipates to," he claimed.
"Hyundai is trying to enhance its scrap procurement quantities from Japan after acknowledging the jump in scrap costs in Turkey," a Seoul-based trader said. It was likewise most likely that Hyundai purchased a reduced volume than it had actually planned to recently, he added.
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