TEX reported that transaction prices of ferrous scrap exports from Japan to South Korea are moving sideways so far when it comes to new deals for No 2 HMS and the two high grades of P&S steel scrap and Shindachi. Cases in point are new purchases of Japanese ferrous scrap by two South Korean electric steelmakers.
Daehan Steel Mill Co made a July 10th 2012 bid of JPY 28,500 per tonne CNF Pusan for No 2 HMS in the wake of the offers the company collected July 9th 2012. The bid would translate into JPY 26,500 per tonne FOB, given the freight rate of JPY 2,000 per tonne for delivery at Pusan port. As of July 10th 2012, it was uncertain what quantity the company had negotiated.
On the other hand, Japan's ferrous scrap suppliers showed few moves expedite new export deals for No 2 HMS as of July 10th 2012 because the nation's Tokyo based Kanto Tetsugen cooperative association of ferrous scrap dealers is supposed hold its export tender July 11th 2012.
SeAH Besteel Corp has made separate bids for P&S steel scrap and Shindachi in the wake of the offers the company collected July 9th 2012. The bids are JPY 32,000 per tonne C&F for P&S steel scrap and JPY 32,500 per tonne C&F for Shindanchi on the condition of delivery at Kunsan port. The former bid would translate into JPY 29,800 to JPY 29,900 per tonne FOB, and the latter bid into JPY 30,300 to JPY 30,400 per tonne FOB, given that the standard freight rate amounts to JPY 2,100 to JPY 2,200 per tonne on the Tokyo Bay Kunsan route.
Until now, South Korea has returned to Japan's ferrous scrap export market as a principal destination for new deals. Negotiations are waning on new exports of Japanese ferrous scrap to Taiwan and Southeast Asian nations such as Thailand and Vietnam, export deals which Japanese sellers earlier expected would bring high prices for spot sales.
In South Korea, meanwhile, domestic steelmakers stay cautious about raising what they pay for new purchases of Japanese ferrous scrap for fear of an adverse effect on arrivals of locally available ferrous scrap at their works. Besides, they are in course of a continued reduction each in what they pay for local ferrous scrap.
Source - TEX Report Limited
(www.steelguru.com)
