Japanese ferrous scrap export prices increased further following higher bids Friday by South Korea's leading electric arc furnace mill, Hyundai Steel, traders in Tokyo said.
The bids from the South Korean mill on Friday were at Yen 35,000/mt FOB for H2 material and Yen 38,000/mt FOB for HS grade scrap, both up Yen 1,000/mt from previous bids on November 28; and at Yen 39,500/mt FOB for the Shindachi grade, up Yen 1,500/mt.
A Tokyo-based trader said Hyundai had to raise its bid levels in order to secure scrap in the country, as domestic prices have been increasing.
"But it seems the company is willing to book more of Shindachi grade scrap, because the company lifted larger range for Shindachi. H2 booking by the company might be not much," the trader said.
Another trader in Tokyo said Japanese traders are paying higher prices to collect scrap for export, so their target has been also increased to around Yen 35,500/mt FOB or above, up Yen 500-1,000/mt from Wednesday.
Japanese traders are currently paying around Yen 34,000/mt for H2 material to be exported from eastern Japan, up Yen 1,000/mt from Wednesday.
"Japanese traders are [taking a] strong stance on their scrap exports, they will not accept any lower prices, so other overseas customers will have to accept at least the same level as Hyundai or above to secure Japanese scrap," the second trader said.
Japan's leading mini-mill, Tokyo Steel Manufacturing, lifted its scrap buying prices by Yen 500-1,000/mt for all works and a steel center, effective for arrivals from December 6. H2 buying prices, truck delivered to its Utsunomiya works, north of Tokyo, were raised to Yen 35,500/mt.
S&P Global Platts assessed Japanese H2 grade ferrous scrap export prices at Yen 34,000-Yen 34,500/mt ($303-$308/mt) FOB on Wednesday, and the mid-point at Yen 34,250/mt FOB was Yen 250/mt higher than the previous assessment on November 29.
