South Korean POSCO has continued to share bids for Japanese scrap this week, keeping prices stable. South Korean market players report that domestic scrap prices in the country are still on the low side, “But each mill’s supply and demand situation is different. Market is still open to price drops due to poor and not improving product sales”.
POSCO has shared bids for Japanese shredded scrap at JPY 57,500/mt ($361/mt) CFR, same on Japanese yen basis with the producer’s previous bid for this grade on June 13. This level indicates FOB based prices for Japanese shredded scrap are at around JPY 54,500/mt ($342/mt down by $5/mt amid exchange rate fluctuations).
Considering the gap between ex-Japan shredded and H2 scrap prices at around JPY 3,000-4,000/mt. This means indications for ex-Japan H2 prices for South Korea are still at JPY 50,500-51,500/mt FOB or but softened to $317-323/mt FOB due to changes in the yen-dollar exchange rate.
Additionally, market sources report that POSCO has shared bids for Japanese HS grade scrap are at JPY 58,000/mt ($364/mt) CFR, $5/mt lower than the previous dollar-based levels.
Meanwhile, SteelOrbis heard that Vietnamese buyers’ idea for Japanese H2 scrap is at around $360/mt CFR. No deals at this level were recorded this week.
$1 = JPY 159.30