Hyundai Steel Buys Japanese Ferrous Scrap at 27,700 Yen/t

Hyundai Steel, South Korean largest electric furnace steel maker, recently held a ferrous scrap import tender and contracted Japanese H2 at FOB 27,700 yen per tonne, according to Japanese large dealer source. Hyundai Steel’s purchasing price lowered by 500 yen from last week while increased by 200 yen from the contracted price by Deahan Steel Mill. Hyundai Steel contracted Japanese ferrous scrap at 20,000 tonnes for H2, 12,000 tonnes for new cutting scrap at 33,000 yen, and 10,000 tonnes for HS at 32,000 yen.

American composite price rebound after one and a half months in the forth week of October. Turkey contracted US ferrous scrap at a large quantity. However, Japanese dealer source said Turkey already turned to wait-and-see situation and anybody can’t confirm the market hit bottom or not.

Japanese ferrous scrap export is mainly for South Korea. South Korean steel makers have recently lowered their offer prices against Japanese ferrous scrap exporters. In October, Chinese and Taiwanese steel makers are restarting procurement of Japanese ferrous scrap.

A scrap dealer said Chinese and Taiwanese steel makers may increase purchasing volume when South Korean steel makers judged Japanese ferrous scrap price hit bottom due to lower US ferrous scrap price. However, another dealer source said ferrous scrap price is unlikely to rebound with weak steel demand in South Korea as well as in Japan.