Further scrap price drop possible in Asia after recent ex-US deals in S. Korea

Friday, 06 September 2019 16:34:57 (GMT+3)   |   Istanbul

Import scrap prices in the Asian scrap market have fallen by $15/mt this week and a further decline is possible, market sources have told SteelOrbis.

The decline has been confirmed in a number of deals, especially, one South Korean mill bought a 32,000 mt batch of H1 scrap from the US at $281/mt CFR, while the previous deal was $24/mt higher and the market price was assessed at $295/mt CFR at the lowest last week. The other large producer in South Korea has also bought the same grade scrap, but details have not been confirmed by the time of publication.

In Vietnam, offers for ex-US HMS I/II 80:20 by bulk have lost $15/mt over the week, coming to $285-290/mt CFR, while Japanese H2 scrap prices have been assessed at $280/mt CFR Vietnam “as their local market is also falling,” a Vietnam-based trader said.

Ex-Japan H2 scrap offer prices have been heard at JPY 26,000-27,000/mt ($244-254/mt) FOB late this week. Tokyo Steel has cut its scrap purchasing prices by JPY 500/mt ($5/mt) at all plants, effective from September 6. This was the second price decrease this week. On September 4, Tokyo Steel has reduced prices at two assets by JPY 500-1,000/mt ($5-9/mt).

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