TEX reported that South Korea's Hyundai Steel is expected to rise 40-50 U.S. dollars, seeing from the current levels of the consultation shipment process to January 2012 and February. This is because the U.S. steel scrap prices rose by nearly $ 45 to $ 50, Japan scrap material prices also rose to $ 70, this is due to the factors lead to increased costs in November, it is like interest rates in the winter which is more and more, highly affected by waste material and imported raw materials.
However, in the whole world, It is said by the Europe's ArcelorMittal that steel prices rose 30-40 euros per ton. America will announce the present situation of shipping fee increase including the partial 22 USD rise(Including waste surcharge $ 33). These two conditions will lead to price rises of steel scrap. It is also possible in Japan that the cost of steel scrap will increase.
Under this situation, it is predicted that the exporting price will rise between January and February of 2012. At present, price USD780 offered by Hyundai is regarded as the CNF price in Asia. Therefore, the goal of Hyundai is to get the price back to USD800 in a short time.
In the meanwhile, the oversea FOB price dropped to USD600. However, recently it increased to USD650 based on FOB. According to this situation, it is possible that the FOB price of steel will exceed USD650. Besides, due to price rises of steel scrap, price of cars will increase until January and February of 2012.