The uptrend in the Asian scrap market has been reflected in new bookings to South Korea. All major sellers - from Japan, Australia and Russia - have sold in total at least 87,000 mt in recent deals this week.
One of the leading South Korean mills has announced a bid for Japanese H2 scrap at JPY 23,000/mt ($215/mt) FOB, as SteelOrbis reported yesterday. According to reports, the mill has managed to purchase up to 50,000 mt of Japanese scrap. As a result, the price increased by JPY 1,500/mt ($14/mt) from the previous transaction of the same grade and origin in South Korea last week. Sources have mentioned that such a big tonnage purchased by a South Korean mill shows a “clear uptrend.”
Moreover, about 30,000 mt of HMS I/II 80:20 from Australia have been purchased by the same South Korean producer at $255/mt CFR. The deal has been at least $5-10/mt higher than expectations in the market.
A small quantity of 7,000 mt of Russian A3 scrap has changed hands at $239/mt CFR South Korea, $9/mt above the previous deal signed in late April.
South Korean mills have been inactive in the import scrap market over the past month with only necessary volumes booked. Producers have focused on purchases of domestic scrap. The recent increase in demand from South Korea has supported prices in Asia, though a further increase is questionable, sources have told SteelOrbis.
