Hyundai Steel Offers FOB 29,200 yen/t for Japan Scrap

Hyundai Steel offered the highest price for Japanese ferrous scrap. The firm submitted the offer at FOB 29,200 yen per tonne for H2 grade, which was 700-800 yen higher from previous week, at tender on Wednesday. The offer price increased for 3 weeks in a row. The higher price is impacting on the market in East Asia when Hyundai Steel tries to secure requirement at higher price though the firm sought cheaper price before. Hyundai Steel increased the offer by 700 yen to 29,200 yen for H2 and by 800 yen to 32,500 yen for new cutting grade at the tender from previous tender. The firm tries to secure scrap at the highest price, which exceeded 28,500 yen for H2 at tender in previous week and September 13 and 14. The offer price of FOB 29,200 yen represents FAS 28,200 yen per tonne for H2, which is 940 yen higher than FAS 27,260 yen of successful bid at Kanto Tetsugen’s export tender for December shipment on November 9. Tokyo Steel Manufacturing increased the scrap purchase price on November 18 and 22 lifting the price to 31,000 yen per tonne for ocean transport to Okayama and to 30,500 yen for land transport to Utsunomiya. A trading firm source said with the higher offer by Hyundai Steel, scrap market in each bay side accelerates the strong tone and the shipping could decrease from Tokyo to Okayama plant of Tokyo Steel. Tokyo Steel could increase the purchase price again.