Hyundai Steel makes low bid for Japanese scrap

South Korean Hyundai Steel offered JPY 51,000/t ($379/t) for Japanese H2 grade scrap and JPY 51,500/t ($382/t) for H1/H2 grade scrap on Wednesday. These offers are JPY 1,000/ton ($8/ton) lower than their previous offer on February 2. The mill has submitted offers for HS grade scrap at JPY 54,000/t ($400/t) down JPY 2,000/t ($16/t). (Based on Fob Tokyo)

Regional trade sources say that the Korean steelmaker's offer prices are much lower than on the Japanese domestic scrap market. ”I don't think they can buy any scrap at these levels," says one trader. He thinks that Japanese scrap, like Turkish scrap, will rise soon.

Leading electric arc furnace operator Tokyo Steel continues to pay JPY 53,500/t ($397/t) for H2 grade scrap trucked to the Utsunomiya steel mill. The supply price of the Japanese factory appears to have remained unchanged since February 10.