South Korea: Hyundai Steel Books US Scrap Cargo; Bids for Japanese H2 Unchanged

South Korea’s leading EAF steelmaker - Hyundai Steel has booked another bulk scrap cargo from the US. The company recently contracted US scrap cargo equivalent to HMS 1 at USD 313/MT, CFR South Korea scheduled for March'19 delivery.

Hyundai Steel's scrap import prices have moved down by USD 12/MT against last bulk contract concluded from the US at USD 325/MT, CFR for February shipment.

Moreover, prices have edged down by USD 3/MT against last weeks’ US bulk contract by Dongkuk Steel at around USD 316/MT, CFR South Korea.

With this contract, Hyundai Steel continues to book at least one bulk cargo for a monthly delivery from the US respectively in January, February and March.

The steelmaker plans to purchase total 500,000 MT ferrous scrap from the US through strengthening long-term contracts. Although being the largest scrap consumer in South East Asia, it is likely to continue buying majorly from Japan and South Korean domestic markets depending on the situation.

Bids for Japanese H2 remain unchanged for two weeks’ period - According to reports, it keeps bids for Japanese scrap unchanged at around JPY 29,500/MT (USD 267), FoB since 14th Dec’18. Japanese domestic scrap prices are expected to have reached the bottom.

Hyundai Steel aims to import around 3.5 MnT ferrous scrap next year - Hyundai Steel seems aggressive to bolster its overseas ferrous scrap procurement lineup in 2019. It plans to raise its consumption of ferrous scrap to total 10 MnT next year. Out of which 6.5 MnT would be South Korean domestic scrap and 3.5 MnT would be imported scrap.

According to reports, the steelmaker will observe regular maintenance at its works in February and with the arrival of US bulk cargo comprising 47,000 MT at Incheon plant last week and an additional 25,000 MT of US scrap scheduled to get unloaded on 2nd Jan’19, scrap inventories available in hand seem sufficient and there seems no lack of inventory.

~ Inputs from SteelDaily