South Korean steelmakers have started to increase local scrap purchase prices this week and, as a result, bids for imported scrap have also improved. For now, new transactions have been reported for high grade Japanese scrap.
Hyundai Steel has announced this week its new bid for Japanese shindachi scrap and bought it at JPY 32,500/mt ($310/mt) FOB, which is JPY 2,500/mt ($24/mt) above the company’s previous deal price level reported by SteelOrbis on October 15. There have been no reports of purchases of other grades by Hyundai Steel so far. But market sources said that the tradable value for H2 scrap has already increased to JPY 28,000-28,500/mt ($267-272/mt) FOB, taking into account the current market conditions. Local sources have mentioned higher domestic prices in South Korea and bullish sentiment in the Japanese market as the major reasons for the higher bids from importers.
The tradable value for ex-Russia A3 scrap has increased to around $300/mt CFR from the previous deal at $281/mt CFR reported on October 19. HMS I scrap from the US could be purchased at up to $305-310/mt CFR, but this price is still too low for suppliers, taking into account higher prices in deals to Southeast Asia.