Date: 19 December 2018 , 23:42
News ID: 2991
NEWS SERVICE: IRON and STEEL

South Korea: Hyundai Steel Books Another Bulk US Scrap Cargo at a Lower Price

South Korea’s leading EAF steelmaker - Hyundai Steel has booked another bulk mixed scrap cargo from the US. After booking two bulk cargoes from US and Russia during early December, US scrap prices have fallen again in the recent contract.
South Korea: Hyundai Steel Books Another Bulk US Scrap Cargo at a Lower Price

Hyundai Steel has contracted for total 45,000 MT of US scrap equivalent to HMS 1 at USD 325/MT, CFR South Korea. Prices have moved down by USD 10/MT as against the last deal concluded for US bulk scrap at USD 335/MT for January shipment.

According to reports, the supplier SIMS metal USA sold this cargo comprising almost 70% Shredded, about 5000 MT HMS scrap while remaining share is occupied by bonus scrap. The shipment will be delivered to Dangjin works in South Korea.

Considering this deal, Hyundai’s purchasing power of HMS (medium grade) scrap looks still low. With this contract, Hyundai Steel seems to put the double lines of check against Japanese scrap prices in the preparation of the winter market. Although Japanese scrap prices continue downtrend, high-grade scrap (like Shindachi) prices remain relatively higher than US Shredded and high-grade prices. These two reasons seem to have been taken into account in the contract.

Hyundai Steel is the largest scrap consumer in South East Asia. It usually purchases scrap majorly from Japan and South Korean domestic market. However, it has shifted some purchase capacity to US scrap as the rising dependence on Japanese scrap could have resulted in increasing Japan’s market price.

Japan’s domestic scrap purchase prices fall further - Following Japan's leading EAF mini-mill - Tokyo Steel’s price cut, Kansai region based EAF steelmakers have lowered scrap prices by JPY 500/MT further yesterday. Despite this, some steel manufacturers have continued production at high levels in the Kansai region as there are chances of movement to ensure the year-end and New Year holidays stock. This might result in some minor activities and seems to support the prices slightly.

But rather than supply and demand tight feeling, a little lowering deployment's likely to continue amid ongoing weak short-term movement.

source: SteelMint
Hyundai Steel bulk mixed scra South Korean domestic market Tokyo Steel EAF mini-mill
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