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| Posco Bid At Y41,000 C&F For P&S Scrap, Shindachi From Japan |
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South Korea's integrated steel company Posco has made a bid of Y41,000/MT C&F for P&S steel scrap and Shindachi, a high grade of Japanese ferrous scrap, in the wake of the offers the company collected March 11 to purchase high-grade ferrous scrap from Japan for delivery at Pohang or Kwangyang. At the same time, the company has made another bid of Y39,000/MT C&F for No1 HMS. The two bids are higher than the initial ones by Y1,000 each. Posco revised the initial bids upward as if to meet what Japan's top electric steelmaker Tokyo Steel Mfg Co announced on a March 11 evening as a purchase price increase of locally available ferrous scrap. But Japan's ferrous scrap suppliers see no sense in Posco's revised bids because their offer prices were beyond Y41,000/MT C&F for high-grade material from the beginning. Also, many of the suppliers have already raised their offer prices to Y42,000/MT C&F or beyond in reaction to Tokyo Steel's purchase price increase of local ferrous scrap. As a result, there are signs of Posco in a tough process of its procurement this time, according to market observers. As market sources see it, Posco's revised bids translate into price levels of Y38,900-39,000/MT FOB for the P&S/Shindachi grades and Y36,900-37,000/MT FOB for No1 HMS, given the freight rate at US$22-23/MT (Y2,000-2,100) for delivery at Pohang or Kwangyang. Besides, the price level of No1 HMS corresponds to Y35,900-36,000/MT FOB for No2 HMS. Meanwhile, South Korea's Hyundai Steel Co has bought Shindachi at Y38,000-38,200/MT FOB and No2 HMS at Y35,000-35,200/MT FOB in the company's new procurement of Japanese ferrous scrap. |
| last modified : Thu 18 Mar, 2010 [09:48] |
