Hyundai Steel, South Korea's leading electric arc furnace mill, maintained its bid for Japanese H2 scrap from its previous bid a week ago, a source close to the company said.
On Friday, Hyundai submitted its bid for H2 at Yen 32,500/mt ($302/mt) FOB for H2, unchanged from the previous week, the source said. The steelmaker is known to have booked about a total of 30,000-40,000 mt at its bids, sources in Seoul said.
"Hyundai is trying to secure sufficient volumes prior to Choosuk holidays," the source said. South Korea's Choosuk holidays will span from October 3-6.
On Thursday, another South Korean mill Dongkuk Steel Mill submitted its bid at Yen 32,000/mt FOB; however, the booking volume has not been confirmed.
"After Hyundai's bid prices of Yen 32,500/mt FOB, Dongkuk might have a hard time securing sufficient volumes," a source in Seoul said.
A Nagoya-based trader said he had expected Hyundai's bid to be the same as Dongkuk at Yen 32,000/mt FOB and was surprised with the bid price of Yen 32,500/mt FOB.
Traders are currently paying Yen 31,000-31,500/mt FAS to collect H2 material for export from eastern Japan, down from Yen 31,500/mt on Wednesday.
S&P Global Platts assessed Japanese H2 grade ferrous scrap export prices at Yen 32,500/mt FOB Tokyo Bay Wednesday, down Yen 500/mt week on week.
The Asian bulk heavy melting scrap remained bullish while Hyundai Steel confirmed two bulk cargoes of 90,000 mt at $351/mt CFR South Korea on HMS I basis, the source close to the company said.
Earlier this week, offer prices for bulk HMS I were around $355/mt CFR South Korea.
Platts assessment for East Asian bulk HMS I/II 80:20 scrap narrowed to $350-$354/mt CFR Wednesday, from $350-$356/mt CFR a week earlier. The midpoint of $352/mt CFR is down $1/mt on the week.
