Major South Korean steel producer Hyundai Steel has booked a bulk cargo of Russian scrap at a lower price level after yesterday's report of a deal of ex-US HMS I scrap at $398/mt CFR.
A total of 30,000 mt of ex-Russia A3 scrap have been sold at $391/mt CFR, which is in line with the recent market expectations. On December 18, SteelOrbis reported a deal for Russian scrap at $435/mt CFR and then there was a long break in sales to S. Korea. There has been a lack of offers from Russia since early January as the minimum export tax for ferrous scrap was increased from €5/mt to €45/mt for 180 days.
Market sources said that negative sentiment still prevails in the scrap segment, but, since prices have already dropped significantly, further declines could be gradual.
Japanese scrap exporters have already started to resist further declines. The lowest price level for ex-Japan H2 scrap is still JPY 35,000/mt ($334/mt) FOB, a bid announced by Hyundai Steel last week.