Scrap importers in South Korea have become more interested in purchases over the past week, with a number of deals reported in the market. At the same time, the price gap between higher quality and lower quality scrap has widened as competition between buyers in the higher quality segment has been tough.
Hyundai Steel has returned to the market in the middle of this week with a bid at JPY 27,000/mt ($255/mt) FOB, similar to last week’s bid. “More than 50,000 mt was accepted at such a price level,” one Japanese supplier said. Also, the producer has purchased HS scrap from Japan at JPY 30,500/mt ($287/mt) FOB, which means the gap between two grades has increased to JPY 3,500/mt, versus the previous JPY 2,500/mt. Demand for HS scrap has visibly increased recently and, as POSCO has been buying at a higher price level, Hyundai Steel has also been forced to bid at a higher level for HS, to attract suppliers, sources have said. The latest price in the deal for HS scrap to POSCO has been in line with Hyundai Steel’s contract.
Also, a cargo of Russian A3 scrap has been purchased at $297/mt CFR South Korea over the past week, which is much higher than the contract price level of $265-270/mt CFR in the first half of August.
There have been no reports of recent transactions for US bulk scrap to South Korea, while the tradable level has been heard at $305/mt CFR. “All US deep sea cargoes have gone to Vietnam and Bangladesh recently,” a source said.
