Hyundai Steel Offers FOB 71,500 yen/t for Japan New Cutting Ferrous Scrap

Hyundai Steel of South Korea increased the offer for Japanese ferrous scrap to more than FOB 70,000 yen per tonne. The offer is 71,500 yen for new cutting scrap, which is 3,500 yen higher than a month ago, according to Japanese trading firm. However, Hyundai Steel could have trouble to secure scrap when Japanese scrap shipping price from Tokyo bay already reaches around FAS 70,000 yen. South Korean steel makers including Hyundai Steel and POSCO purchase new cutting scrap mainly from Japan while they secure heavy scrap from USA. With the strong demand from offshore makers, Japanese high grade scrap supply could get tighter when domestic integrated steel makers increase the purchase volume. With the higher scrap market, Japanese electric furnace steel makers announced additional price hikes one after another. JFE Bars & Shapes announced on Wednesday the firm increases the selling price by 5,000 yen per tonne for angle, channel and flat bar for June. Kyoei Steel increases the concrete reinforcing steel bar price by 5,000 yen for June shipment. Daiwa Steel increases the rebar price by 5,000 yen for June order. The makers try to pass higher cost price mainly for ferrous scrap. JFE Bars & Shapes increased the price by total 40,000 yen per tonne in the year. Kyoei Steel increased the rebar price by total 45,000 yen in the year while Daiwa Steel increased the price by total 43,000 yen.